Where Do Props Set Up Shop?

[Don Bright]

Quote from cstfx:

Does a BD have to buy a membership? Can't BD's stand alone if they have the clearing agreement with an exchange member (i.e. a BD who clears through Penson or GS)?

You have to have a membership with an SRO (Self Regulatory Organization), otherwise you're a "customer" of Penson or GS, and subject to retail or portfolio management limits. Or, you can become a member of NASD, which saves buying a Seat, but costs (a lot) in other ways.

This is why we see these darn Sub-LLC's coming and going.

Edit: To beat a dead horse, section 15(b)(8) of the Act requires a broker dealer to be a member of a registered national securities association (NASD) is only one. 15b9-1 exempts broker dealers from registration with the NASD if it is a member of a national securities association, carries no customer accounts and meets an income limitation from transactions not effected from proprietary transactions through a registered broker dealer.

Don

 

[cstfx]

Quote from Don Bright:

You have to have a membership with an SRO (Self Regulatory Organization), otherwise you're a "customer" of Penson or GS, and subject to retail or portfolio management limits. Or, you can become a member of NASD, which saves buying a Seat, but costs (a lot) in other ways.

This is why we see these darn Sub-LLC's coming and going.

Edit: To beat a dead horse, section 15(b)(8) of the Act requires a broker dealer to be a member of a registered national securities association (NASD) is only one. 15b9-1 exempts broker dealers from registration with the NASD if it is a member of a national securities association, carries no customer accounts and meets an income limitation from transactions not effected from proprietary transactions through a registered broker dealer.

Don

Is that why "Bright" (or others) doesn't show up on a NASD broker search?

 

[Don Bright]

Quote from cstfx:

Is that why "Bright" (or others) doesn't show up on a NASD broker search?

We are an exchange member, and therefore don't have to join the NASD "club" - saves $$ on filing fees, etc., but does cost more to buy the membership. We've always been exchange members, and don't have a retail operation, so we have no need to be an NASD member (at this time, but you never know).

Don

 

[cstfx]

Thanks, Don.

Your experience and knowledge of the industry is welcomed and appreciated.

 

[Don Bright]

Quote from cstfx:

Thanks, Don.

Your experience and knowledge of the industry is welcomed and appreciated.

Thank, I really appreciate it!

Don

 

[TradEStar]

So when is Bright opening an Austin location? I was just informed about this tonight from someone I know, and this sounds like good idea due to all the traders here.

 

[Don Bright]

Quote from TradEStar:

So when is Bright opening an Austin location? I was just informed about this tonight from someone I know, and this sounds like good idea due to all the traders here.

Anyone who has an interest in Austin, please send me an email to: donbright@brighttrading.net

Thanks!

Don

 

[TradEStar]

A Bright Trading office in Austin would be a smart move, so I might just send you an email to find out more about this....TY.

 

[Don Bright]

Quote from TradEStar:

A Bright Trading office in Austin would be a smart move, so I might just send you an email to find out more about this....TY.

We have 2 long time traders ( a couple), who have made consistent money for years, and they have brought another younger trader "under their wing" in their home office. As we get more interest, they will likely open an affiliate office there.

Don