I found the definition myself on http://www.futuresindustry.org/fimagazi-1929.asp?a=1015&iss=151
The two most popular types of trading firms are trading arcades and prop shops with many variations on the two models. Some firms have created a hybrid by combining characteristics of both arcades and prop shops. The primary distinction between arcades and proprietary trading firms is for whose account the individual trader is trading. In an arcade, traders trade for their own account while in a prop shop, traders trade for the firmâs account.