Prop Trader Contract sample

S

SocalTrader

I have a dear friend of mine who is going to have some traders trade proprietary for his account. Are there some sample prop contracts or something like that where he can fill in the blanks like what % to pay his guys over commissions and rules about how much exposer anyone can have, what the draw against the account will be etc. Any help would be greatly appreciated. If anyone has one of these in digital form without names and numbers it would be big plus. Thanks in advance.

Dan
 
Contact Don Bright on this...but truthfully, nobody in their right mid is going to start putting up their deal, legal status ect....your friend should contact a securities attorney before he proceeds...he could get burned...good luck
 
Quote from SocalTrader:

I have a dear friend of mine who is going to have some traders trade proprietary for his account. Are there some sample prop contracts or something like that where he can fill in the blanks like what % to pay his guys over commissions and rules about how much exposer anyone can have, what the draw against the account will be etc. Any help would be greatly appreciated. If anyone has one of these in digital form without names and numbers it would be big plus. Thanks in advance.

Dan
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Have your friend interview at a couple of prop firms with contracts, and take a copy to get an idea. Otherwise, if he doesn't know how to do this already, no one is going to help him on this board, since most likely the guys that do run firms aren't about to spill their beans. The lawyer advice was a good one.
 
There is no question that a lawyer will be involved when the contracts are executed. My friend is just looking to save some time and money if anyone had examples. He was looking to give the lawyers a draft to review instead of having the lawyer draft one from scratch. I don't want anyone to turn over confidential information just looking for standard boiler plate stuff. That said I appreciate the feedback.
 
Quote from SocalTrader:

I have a dear friend of mine who is going to have some traders trade proprietary for his account. Are there some sample prop contracts or something like that where he can fill in the blanks like what % to pay his guys over commissions and rules about how much exposer anyone can have, what the draw against the account will be etc. Any help would be greatly appreciated. If anyone has one of these in digital form without names and numbers it would be big plus. Thanks in advance.

Dan
More...

If your friend is backing traders, he can write whatever he likes. If the traders are licensed professional (vs. retail), then there is a whole different set of guidelines. If they're retail, it really makes no difference anyway since they are subject to simple margin rules etc. On the trading floors, there are as many different "deals" as there are trading groups.

You need to differentiate between the above first, and then I may be able to help out a bit.

Don
 
C-mon Don, give him a sample to work with....heck, i even have one of your contracts somewhere...imitation is the greatest form of flattery:D
 
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