Worldco Going Out of Business

[zdreg]

100% payout is not allowed for prop trader violation of reg. t. some firms firms like worldco paid out 95 to 99% to skirt rule.

 

[NUTSNEAL]

Quote from zdreg:

100% payout is not allowed for prop trader violation of reg. t. some firms firms like worldco paid out 95 to 99% to skirt rule.

zdreg

Would you please direct me to the provision or section of reg T you are referring to as a violation? I am not aware that reg T addresses this at all???????

http://www.fisonline.net/edu/reg_t.html#gene

Thanks

 

[CPTrader]

http://www.nypost.com/business/8222.htm

 

[zdreg]

denying 100% payouts is not written into reg. t but is an interperation of reg. t.

 

[NUTSNEAL]

Quote from zdreg:

denying 100% payouts is not written into reg. t but is an interperation of reg. t.

Reg T doesn't address payouts!

 

[CalTrader]

Quote from CPTrader:

http://www.nypost.com/business/8222.htm

This article makes the case for why you should ALWAYS thoroughly investigate potential business partners. If any type of negative information comes up it is nearly always better to refuse to do business with the firm rather than gamble on thier future behaviour.

Why people dont check out who they are dealing with is frankly, hard to understand ......

 

[zdreg]

reg t is being used to deny 100% payouts. rationale is that if you are being being paid out 100% you are not a prop trader but a customer.

 

[NUTSNEAL]

Quote from zdreg:

reg t is being used to deny 100% payouts. rationale is that if you are being being paid out 100% you are not a prop trader but a customer.

zdreg

That is really interesting. I could see a regulator trying that but I don't think it could hold up to a test. Could you direct me to any of this written interpretation????

Thanks

 

[zdreg]

if written interpertation iis needed of difference between a prop trader and customer, i suggest you speak to a compliance officer at any day trading firm.

 

[I Missed Boat]

Quote from zdreg:

worldco traders are being offered jobs at schoenfeld which is solidly capitalized. deal is not as good as worldco but worldco payouts were ridiculously high. no bd could make money at those rates.

although the schonfeld deal includes things that worldco didn't offer (gross, trading different markets, systems, etc).