I don't think you have the first clue as to what a BD is and what exchange membership is and isn't. Nor do I think you understand how leverage works. And no, I'm not going to explain it to you.
PDT Rule & Prop Firms
- Thread starter tito
- Start date
I don't think you have the first clue as to what a BD is and what exchange membership is and isn't. Nor do I think you understand how leverage works. And no, I'm not going to explain it to you.
I wonder if the retail direct access firms are also quietly behind the scenes putting pressure on the SEC to shut down prop trading firms. They would seem to have the most to gain. They were stuck giving out 4 to 1 intraday leverage and unlicensed sub LLC prop firms are giving out 10 and 20 to 1 intraday leverage. The successful traders from these sub LLCs will most likely go to retail direct access firms, some may get licenses and go to firms like Assent or Bright, but those firms could be the next ones to be targeted. Maybe the firms like IB will be the big winners once the dust has settled from all of this?
Great post Mav.
Mav gets it, read his next post also about how sub-LLCs get in trouble.
I don't understand why there are still people asking when this will make Bright, Echo, or Assent change their business models. Anyone asking that, read this post, read the one on page 1 of this thread, and if that doesn't explain it to you read them again and again until it does.
Those three firms are registered exhchange member Broker/Dealers. All of their traders become members of the exchange, an are subject to exchange rules, not PDT 4 to 1 "retail" rules. Their traders use leverage fully within the framework of the law and they are unaffected by ANYTHING related to the Tuco demise. They were totally different than Tuco before, and are still totally different than Tuco.
The firms that will need to change are any other unregistered non-exchange member broker/dealers. Quit asking Don when he is going to change, he does not need to. Think about how long he has predicted that other firms will need to change to be like their's and Echo and ask the better question which is to ask any unlicensed firms how long it will take for them to apply to be a registered broker/dealer.
As my securities attorney explained it, this is another problem. As a BD, you are required to register with an exchange OR finra. If you are going to have customer accounts, you HAVE to register with FINRA. This is ONE of the reasons they are looking at deposits as a retail relationship, regardless of someone being registered or not.
bright traders were not registered for years. it wasn't illegal then.... when did congress write the new laws? i think they started requiring 7's in 99.
please.. someone cite the statute.
the 7 has nothing to do with trading. what an odd law and what an odd thing to all of a sudden require.
please.. someone cite the statute.
the 7 has nothing to do with trading. what an odd law and what an odd thing to all of a sudden require.
can anyone share some positive info with traders here what firms can offer a option to traders to register as a member of the cboe to have access to trading capital for equity traders. everyone keeps discussing the end of the prop model even though most traders know all these rules have been in place for years & allowed to grow into a huge biz. another option to comply. what are the NAMES of some firms that are part of the cboe exchange that a trader can register for membership with a firm for leverage?
Yep..that sounds like a good idea.
why don't we discuss about a solution!
It will be a good idea to have a list of all the prop firms that are members of CBOE since in that case, you don't need a series 7.
Also, if the PDT rules apply to both licensed and non-licensed day traders then whats the benefit of getting these 7, 55, 63 etc? can some one enlighten me?
I used to have all these back in 2003 and later decided not to renew my licenses. Now it seems that the SEC doesn't want any one getting more than 4 to 1 leverage period. This really doesn't make any sense.
why don't we discuss about a solution!
It will be a good idea to have a list of all the prop firms that are members of CBOE since in that case, you don't need a series 7.
Also, if the PDT rules apply to both licensed and non-licensed day traders then whats the benefit of getting these 7, 55, 63 etc? can some one enlighten me?
I used to have all these back in 2003 and later decided not to renew my licenses. Now it seems that the SEC doesn't want any one getting more than 4 to 1 leverage period. This really doesn't make any sense.
