Worldco - A New Way Of Doing Things?

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Quote from Magna:

OxonianTrader,

As you registered at ET on 9/12 and your very first post the same day (outside of an incidental on Chit Chat) was starting a WorldCo thread and providing a "recruitment" link at the WorldCo site, the latter has been removed. While I want to give you the benefit of the doubt, that this thread is indeed an honest inquiry on your part and not a subtle promotion (even down to the thread title), I must ask that no links be provided and no discussion of specific payout structure. WorldCo is not a sponsor at ET and therefore cannot be extended free advertising space in any form, directly or indirectly. Thank you.
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You can do whatever you like with your website. I have no interest in furthering the goals of worldco whatsoever since I have no affiliation with the firm except that I know a few guys who worked there for a few years and who have since landed trading positions with Bear Stearns and JP Morgan.

It would be exceedingly simple to create a program which automatically creates EliteTrader.Com accounts and posts advertisement links in an automated fashion, also autoupdating my IP address. Of course, one would have to write a script which automatically creates email accounts at one of the many free online email providers (less yahoo and msn). In short, it is not my goal to advertise on here; if that was my goal such would be very clear with no two guesses about it.

One would think that, out of fairness, all questions relating to brokerage houses, commissions, and trading in general would be heard on here.
 
Quote from OxonianTrader:



You can do whatever you like with your website. I have no interest in furthering the goals of worldco whatsoever since I have no affiliation with the firm except that I know a few guys who worked there for a few years and who have since landed trading positions with Bear Stearns and JP Morgan.

It would be exceedingly simple to create a program which automatically creates EliteTrader.Com accounts and posts advertisement links in an automated fashion, also autoupdating my IP address. Of course, one would have to write a script which automatically creates email accounts at one of the many free online email providers (less yahoo and msn). In short, it is not my goal to advertise on here; if that was my goal such would be very clear with no two guesses about it.

One would think that, out of fairness, all questions relating to brokerage houses, commissions, and trading in general would be heard on here.
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I just realized that you only deleted the link I posted to the WorldCo website. That seems fair (at least you didn't delete the entire thread or my question!).

Thanks
 
Quote from Discipline:

Ox,

Looks like Magna is on to you.

Size,
I appreciate that you understood my post. It is a subtle point that too many people are ignoring I am afraid. I guess we'll find out soon enough.
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I have no affiliation with WorldCo. Why would I advertise for a a company without getting paid for it? lol
 
Quote from Discipline:

Despite what all these firms are doing, if you are getting 100% of your p&l, you are subject to federal reg T. It is my understanding that there is currently a request for a "no action" letter by one firm asking the SEC if they can give a 100% payout and if a trader can take losses.

There are some interpretations of the regs that say a prop trader may not write a check to cover his losses. This issue has never been determined in writing by any agency. The firms that pay 100% are taking a roundabout view that you are an investor in an LLC and can be allocated P&L anyway you agree and that it is the entire LLC that is subject to net capital not the individual. While that may be true of an LLC, the SEC determines who is subject to net capital and who must meet reg T.

If the firm gets the no action letter, then Bright and all the 100% payouts are safe. If it is denied, then those firms paying out 100% and maybe even those allocating any losses to a trader may be forced to change their model. I think in a twisted logic way, the firm that submitted the request really wants it turned down.

A negative ruling by the SEC could jeopardize most of the firms in this business. The ones I know of who would not have a problem include Schoenfeld, First NY Securities, and ETG. I am sure there are others, and I am sure that some of the other firms will adapt if necessary.

This issue was explained to me by a college friend who is a securities litigator at a large Wall Street law firm that helped draft the letter. Coincidentally, I bumped into him tonight at a Yankee game. He would not tell me when the letter was submitted nor when he expected it to be ruled upon. (Disclaimer: While I can repeat his explanation, I do not have a firm grasp on the legal nuansces he makes. Also, my friend would not pass the background check for a job with the FBI or CIA. Suffice it to say, he inhaled. Maybe even tonight.)

It seems like being a real customer is the safest structure.
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Can anyone confirm or refute this concept? Is it legally/regulatorily ok to pay a Prop trader 100% or is he then a customer?
 
Don is mistaken. Worlco does offer full 100% payout if you have cap (just like your company, Don). And the ones who are fully capped, get 100% payout, have commission rates that blow Bright's out of the water due to their self clearing business.

Most people who complain about the lower percentage payouts are the ones Worldco let in with little or no cap at all....Which to me, sounds like someone's giving people chances and not closing the door on them... Also, Worldco doesn't charge hidden desk fees or charge their own traders extra for training (ridiculous!)....characteristic of a retail firm, not a professional prop firm.

Just clearing some things up. Seems like some people don't know much but talk as if they do.

Quote from Don Bright:

Since many firms offer a full 100% payout, our friends at WorldCo would have a hard time exceeding that.

I, for one, would be happy if they had a new type of training program that would help new people. That is good for the industry.

Don
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Quote from Chris Watts:

Don is mistaken. Worlco does offer full 100% payout if you have cap (just like your company, Don). And the ones who are fully capped, get 100% payout, have commission rates that blow Bright's out of the water due to their self clearing business.

Most people who complain about the lower percentage payouts are the ones Worldco let in with little or no cap at all....Which to me, sounds like someone's giving people chances and not closing the door on them... Also, Worldco doesn't charge hidden desk fees or charge their own traders extra for training (ridiculous!)....characteristic of a retail firm, not a professional prop firm.

Just clearing some things up. Seems like some people don't know much but talk as if they do.
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I was as taken aback as anyone, all I was responding to is that I don't know of anyone paying more than 100% payout....simply a response, not a debate. And was hoping that WorldCo is offering some good training.

Any professional, in any field, can choose where to pursue their profession, and they must evaluate for themselves whether or not the overall cost/benefits make sense to them. (I do take exception, if you were referring to BT, about the comment "hidden" fees, every trader is fully aware of all of our fees, and we have always conducted ourselves in an open and upfront business manner. We are proud of our business model, and our training.....and, as I said, I am hoping that other firms will help with making traders successful....it is simply good for the industry.

And I miss my friend "hitman" - so I guess we need another voice from WorldCo for discussion purposes.....

All the best, and good luck...

Don :)
 
Quote from Chris Watts:

Don is mistaken. Worlco does offer full 100% payout if you have cap (just like your company, Don). And the ones who are fully capped, get 100% payout, have commission rates that blow Bright's out of the water due to their self clearing business.
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if this is true where can i sign up? sounds like worldco is the place to be
 
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