Prop Trading Firms - Note On Threatening Regulatory Developments

Bob Green at end of call says

"Any firm is potential target for the threatening regulatory developments".

It helps if its a member of a regulatory body, but doesn't gurantee its long term survival.
 
In this discussion of leverage extension given by prop firms to traders, it might help to keep in mind that these leverage extensions over Reg T's 4:1 were not the prop firms making but were in fact, created by the SEC in the 70's or 80's in response to requests by exchanges to enable their members to provide more liquid markets. I stumbled across the article a while back. It was kinda fascinating - chronicling the "birth" of risk based margin haircuts which enables the clearing firm to extend greater than 4:1 leverage to registered exchange member firms.
 
Quote from Don Bright:

Maverick and I may have a Prop trading info chat in the near future as well. Trying to keep all this as "real" as possible.
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Wow, times really are changing. I wouldn't have bet on that one.
 
Quote from Maverick74:

Yes, every broker will offer it, or most I should say when the program goes live. It's still being tested in the pilot program. Fimat was the only firm in the pilot program and the pilot program involved only index options, not equities.

Everything I have heard from the exchanges said there would be a very steep minimum. Probably not 5 million like now, but at least 500k to a million.

No retail broker wants to deal with the headache of managing risk based haircuts Beck. Hell, we are in the haircut business and we hate dealing with them. It's a nightmare. Last thing we need is grandma selling gamma after she gets home from an Optionetics seminar and then blows up the brokerage firm because she thought she was only risking 20k on a trade, not 500k. LOL.
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http://www.elitetrader.com/vb/showthread.php?s=&threadid=78820&perpage=6&pagenumber=10







:D
 
Quote from jimmyneutron:

There are no account funding requirements.
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Uhh, yes there are. Why don't you give IB a call and ask them. They will be more then happy to tell you. :D
 
Quote from Maverick74:

Uhh, yes there are. Why don't you give IB a call and ask them. They will be more then happy to tell you. :D
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I knew about this a week ago... I have talked to Bear and IB, both stated there are no minimums beyond the req to carry a margin account and DEA approval for the broker in question.

It's moot in my case, but there is no 500k limit. I know Mav, you got the skinny on this development in 1971, before puts were listed, right?
 
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