Prop Firms = What % of daily volume ?

[nyxtrader]

Quote from Joab:

Let's do some basic math.

Average prop trader 25,000 (low end) - 250,000 (high end) shares per day.

So let's just say 75,000 shares average per day per trader (give or take).

Average prop house 250 traders

Say 5 big houses and 10 smaller boutiques so lets take 7 as a round #

7 prop house x 250 Traders x 75,000 shares each per day

= 131,250,000 shares volume per day

hmmmmmmmm


Hows that math ????

Assent alone has more than 1500 traders itself. That isn't including Hold, RBC or some others out there.

 

[Joab]

Quote from nyxtrader:

Assent alone as more than 1500 traders itself. That isn't including Hold, RBC or some others out there.

Wow, I did not know that.

 

[frank grimes]

for guys that run automated programs, it's a lot more than 250k.

 

[crgarcia]

Less than 1%?
(Mostly losing volume, as most people at prop firms lose money)

 

[Joab]

So my rough (very wrong) estimates = 19% of Fridays Nasdaq volume.

The point of this thread is to determine the loss of business to the Exchanges that enforcing the PDT rule would have.

 

[NY0BScalper]

Quote from nyxtrader:

Assent alone has more than 1500 traders itself. That isn't including Hold, RBC or some others out there.

1500 traders or 1500 accounts. There is a big difference.

Between all the prop houses you might have 5k+ accounts. But how many active traders?

 

[rosy2]

Quote from Joab:

So my rough (very wrong) estimates = 19% of Fridays Nasdaq volume.

you're kidding right? you think 19% of nasdaq volume is from daytraders at trading arcades.

 

[dsq]

"they dont even register. they are insignificant"

I remember one daytrading firm in the .com days trading 20% of emlx daily volume-about 5million shares....they were just one operation.I was astounded at that time.I would bet that prop firms trade at least 30% of the market and wouldnt be surprised if it was 40 or 50 % of the market...I dont have stats but i remember before the advent of web trading in 1996 avg nyse volume at 200-400million daily.
The massive increase in vol came with the web and daytrading firms.

 

[KeithOmalley]

isnt program trading like 50% of the NYSE volume?

 

[monstercat]

joab your #'s are faulty. assent has 1500 traders,genesis over 3k and lightspeed 1500. thats not including bright,hold,echo and probably 5-10 others. that alone is 10k hard core traders. 10k hard core and lets be conservative and say 25k a day(tons do 200k-1 mil and many do litttle to none). 10k traders x 25k vol a day is 250 mil a day vol . add in hyper traders from swift and title and thats another 200 mil easy. i'd say easily all day traders do 500 mil- 1 bil a day of the total vol are 20% of total vol