talk about a berserk overreaction from hydro.....look i heard these rumors of possible sec action two weeks ago.....a couple of few of my friends left......and i had to as well.....i had nothing against the firm or the retail prop model they had.......i looked on a couple of job boards for real props that didn't require capital since i didn't want to go tru the same thing again knowing something was brewing.....they're were none.....all there was was a bunch of retail props posing as true props acting like their 'offering jobs'.......that's bs and i called it like it is......anyway all i wanted to do was drop hints that this may be brewing.......in a year the whole industry will have changed......like i said i'm not for regulation just truth in advertising thats all........but you guys that hate on the sec, do you even know how the market funtioned before......firms just pulling #s out of their ass.....they still do but at least now there is a paper trail and they can be held accountable.
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SEC needs to CRACK DOWN on "Prop" firms
- Thread starter chewbacca
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Quote from Maverick74:
I think Hydroblunt said it all, not much for me to add here. Except I will say this, do you guys really think a true prop firm would ever hire you under increased regulations? I mean seriously, think about it, at least now, most of you guys have a chance, a shot at making something, even if that chance is still rather small. If firms were forced to make you employees or put up 100% of your nut, I'm am fairly certain most of you guys would be working the drive thru at your local McD's. Excuse my forwardness.
Without a doubt it will be bad across the board unless the standard prop firms find a way to legally tweak their arrangements (and I'm sure they will). I think you could see this coming a year ago though. The whole retail accounts with prop leverage thing was a quite noticeable attention-getting issue. The real question is which will stay afloat with good business sense. I don't want to have to get up and move to a new platform.
Quote from Dogballoon:
Without a doubt it will be bad across the board unless the standard prop firms find a way to legally tweak their arrangements (and I'm sure they will). I think you could see this coming a year ago though. The whole retail accounts with prop leverage thing was a quite noticeable attention-getting issue. The real question is which will stay afloat with good business sense. I don't want to have to get up and move to a new platform.
Which retail firms are offering prop leverage? Is this something new? Most prop firms are not retail nor can they accept retail traders. If you are a member firm of an exchange, you are allowed to have professional traders who are also a member of that exchange. Am I missing something here?
Quote from chewbacca:
talk about a berserk overreaction from hydro.....look i heard these rumors of possible sec action two weeks ago.....a couple of few of my friends left......and i had to as well.....i had nothing against the firm or the retail prop model they had.......i looked on a couple of job boards for real props that didn't require capital since i didn't want to go tru the same thing again knowing something was brewing.....they're were none.....all there was was a bunch of retail props posing as true props acting like their 'offering jobs'.......that's bs and i called it like it is......anyway all i wanted to do was drop hints that this may be brewing.......in a year the whole industry will have changed......like i said i'm not for regulation just truth in advertising thats all........but you guys that hate on the sec, do you even know how the market funtioned before......firms just pulling #s out of their ass.....they still do but at least now there is a paper trail and they can be held accountable.
Reputable firms NEVER perpetuate the illusion that their clients are being 'hired' for any 'jobs'. Only sleazy bucket shops would do such a thing.
Quote from Rearden Metal:
Reputable firms NEVER perpetuate the illusion that their clients are being 'hired' for any 'jobs'. Only sleazy bucket shops would do such a thing.
EXACTLY!!!!!!
But one paticular firm - REFCO - pretended to 'hire' 'prop' traders and pretended they were employees when in fact they were customers. Refco goes belly up, and the customers want their deposits back as all customers of brokers are entitled to under SPIC insurance.......Refco opened up a legal can of worms.......now you guys may feel semantics is an inconvienant thing.....but in law semantics is everything.
Quote from Maverick74:
Which retail firms are offering prop leverage? Is this something new? Most prop firms are not retail nor can they accept retail traders. If you are a member firm of an exchange, you are allowed to have professional traders who are also a member of that exchange. Am I missing something here?
Obviously I can't say which ones but it was common, and I think it had something to do with how accounts were designated -- they were prop firms that were bypassing the licensing requirement for certain kinds of leverage. It may not be a legitimate legal issue, I just remember management of other firms taking issue with it. You know better than I do about exchange rules behind this kind of thing though.
remember......those refco guys had countless millions in deposits.......and they lost it all due to no fault or action on their part......you may think tough shit......but what if you were in thier position??....they had families and obligations like all of us.....it just so happens that thier lawsuit opens up a legal can of worms.
Quote from chewbacca:
remember......those refco guys had countless millions in deposits.......and they lost it all due to no fault or action on their part......you may think tough shit......but what if you were in thier position??....they had families and obligations like all of us.....it just so happens that thier lawsuit opens up a legal can of worms.
Wait a minute. As far as I can remember, Refco had a retail arm and a prop arm. The guys under the prop arm have no re-course, why should they?
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