Unregistered LLCs and Canadian Based Companies busted

retail leverage under 25k is 2-1

If you have less then 25k in your account your subject to 2-1 margin

If you trade prop then you know everyone uses it for leverage period
 
I was there while it was happening.

I was sitting right next to the risk manager.

They booted the guy after 2 or 3 trades because it didn't make any sense.

Lisa is a class act, nothing shady about her at all, its a shame this happened to her.
 
Quote from SgtSlottter:

SEC Files Charges in Hacking Case
Commission Says 4 Firms Unwittingly Helped Latvian Trader Gain Access to Brokerage Accounts

Ms. Hyatt and Mr. Rizzo each agreed to pay a $35,000 penalty, the SEC said. Mercury Capital, which will pay no penalty as part of its settlement, is no longer in business.
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These are slap-on-the-wrist fine amounts...
Basically the minimum you could get for a full investigation like this...
Something you might get for improper books and records...
For something that is *** shady on so many levels ***.
 
Slap on the wrist for the owners but it says Mercury is out of business. Does anyone know what happened to the traders at these companies?
 
Quote from hitnrun:

these prop firms would not disappear if the pdt rule was abolished
i guess your a newbe with that statement

the purpose of prop trading is to have access to 20-50-1 bp plus
it's all about leverage for stock traders

the retail leverage of 2-1 is not ideal for prop traders even with no pdt rules.




the funny thing, is that if they just got rid of the PDT rule, all of these firms would disappear over night. in fact, i would argue, the reason these firms exist at all, is because of it. gotta protect the idiots from themselves though i guess, rgt?
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Just a comment. Back when they started PDT, I was sort of mystified. They "insisted" on $25K, which is fine. But then they doubled the amount of margin, from 2x to 4x. For some reason, that just made little sense to me. Given the other basic drawbacks for PDT retail accounts (wash sales, matching trades, no Mark to Market, minimal capital usage,etc.) why give them more $$ to hang themselves with.

I'm a free market guy, and I think Americans should make their own minds up as to whether they want to trade or not. Retail or professional (and, yes, many retail traders are professional in many senses). If I want to buy 5000 SPY in my Schwab account, and sell it back, then I should be able to buy it again, darnit, LOL.

So, forgot my point... oh yeah, LOL... not so sure it's just the PDT that made things so weird.

Don

edit: Oh yeah number 2. the same firms I bring up, the "other two" and us, were around for a long time before the PDT rule.
 
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