Where are the TRUE Prop Trading firms?
- Thread starter ProTrader432
- Start date
They find you, the days of hanging out at Cactus in Chicago and getting staked are long gone.
Actually, Schonfeld let go of 15% of its staff, according to this article:
http://www.businessweek.com/news/2010-07-06/schonfeld-to-fire-50-traders-as-speed-curbs-profits.html
Chimera is still around, and is one of the few "true prop" trading firms:
http://www.chimerasecurities.com
You're right about the new exam, tentatively called the Series 56, which applies to CBOE prop firms, "shady" or not.
http://www.sec.gov/rules/sro/cboe/2010/34-63314.pdf
I think all Hedge Funds are TRUE Prop Trading firms
Prop, 20 yeas ago and on, used to mean you got staked 100% after digging ditches as a runner or a clerk at an exchange and showing promise, or by whatever other relationship you could extablish. That was a mono on mono, don't care about your pedigree, make me money, time.
The whole subject needs to be put in context over time to come to a defination as to what it means today. SAC used to stake guys with nothing more than a reference and a one strike and you are out gig.
It is a broad subject and very misunderstood.
The whole subject needs to be put in context over time to come to a defination as to what it means today. SAC used to stake guys with nothing more than a reference and a one strike and you are out gig.
It is a broad subject and very misunderstood.
Agreed. However, even for the equity prop business model that stake the traders 100% and pay a salary/draw, if they are a CBSX member, then they're regulated by their SRO, so I guess they can't really be called a "hedge fund" in the traditional sense.
That's the only post so far that is really useful. Thanks Lucias
But seriously, why bother going "true" prop if you are already successful? Besides 50% of your profits, what else do you need to give away for such a deal? A firm covering your losses is not worth much at all -- you're consistently profitble, correct?. A salary? Same thing.
Sure I can see if one traded very liquid markets and got immediate access to 10x more capital to trade, a firm would be able to sell a deal and take advantage of a trader just starting to turn the corner. But for seasoned profitable traders, all the leverage for larger markets could easily be found in futures/derivatives markets, correct?
Sure I can see if one traded very liquid markets and got immediate access to 10x more capital to trade, a firm would be able to sell a deal and take advantage of a trader just starting to turn the corner. But for seasoned profitable traders, all the leverage for larger markets could easily be found in futures/derivatives markets, correct?