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Your thoughts Mr. Maverick
- Thread starter Don Bright
- Start date
Quote from JamesL:
from the bulletin:
All persons associated with the broker-dealer must be appropriately registered with each SRO of which they are a member or TPH in accordance with the rule of each SRO of which they are a member.
Does "appropriately registered with each SRO" mean that members will soon have to be 7'ed, etc? I know there was discussion about this earlier this year, but does this notice push it closer to reality?
No, it does not mean that. No series 7 required for CBOE members.
Quote from Don Bright:
Yeah, my people tell me that this particular release is more focused on the profit split "red flags" instead of S7 or other licensing.
Don
The latest "offer" I've received from another prop/hedge shop is 90/10 at 1/1000 at 40:1 without a S7, CBSX. I`m trying to calculate out if the commission savings from 2/1000 and rebates will justify giving up 7.5% at 30:1 with echotrade.
Quote from CQNC:
The latest "offer" I've received from another prop/hedge shop is 90/10 at 1/1000 at 40:1 without a S7, CBSX. I`m trying to calculate out if the commission savings from 2/1000 and rebates will justify giving up 7.5% at 30:1 with echotrade.
Obviously depends on your trading volume. Is Rob allowing 30 to one overnight at Echo now (I know he "can" - just not sure he likes to, LOL).
Good luck in whetever you end up doing.
Don
Quote from Don Bright:
Obviously depends on your trading volume. Is Rob allowing 30 to one overnight at Echo now (I know he "can" - just not sure he likes to, LOL).
Good luck in whetever you end up doing.
Don
LOL. I can't sleep a wink at 6:1 retail unless I'm hedged with options, so 30:1 it would have to be a sure thing to keep me long/short at that level.
I find it hard to present an consistent summary of volume to new brokers for the market being what it is, cyclical, the summer break, September/October rally/crash, year-end for hedges November 30, end of year tax selling...
But my PNL is what I want it to be, how I adjust my strategy based on my mistakes, the news, the overall tone of the market, the ETFs, gold, the dollar, there are so many variables to profitability. Volume, I can manage.
It's funny because Mav convinced me not to start my own CBSX, so I'd rather focus on HFT and building what I call a "second guess" system that manages the emotional side of a trading decision based on probability and the statistical analysis of the computer. Even if an algorithm comes back with a buy or sell signal, doesn't mean it's correct or will be profitable at any given point in time. On position trades especially, I'm not trusting 75% of my margin on a few bars of data in this market when I'm short GLD after a 10% runup.
I guess that's why DaVinci called it "the golden ratio".
Today, Maria Bartiromo was interviewed on Tech Ticker about a new book of hers, "The Weekend That Changed Wall Street".
In the subsequent Tech Ticker article, here are two of the notations about her video comments (link below) on the current financial regulation reform:
"... Today, financial firms are engaging in asset sales and the splitting off (or shuttering) of proprietary trading desks in the wake of the Dodd-Frank financial reform. Bartiromo expects this process to continue 'because fin-reg is wide open to interpretation' about what banks can/cannot do with their capital.
... In terms of what hasn't changed, the status of Fannie Mae and Freddie Mac is the biggest issue for Bartiromo.
It's 'just ridiculous' the financial reform bill didn't address Fannie and Freddie and 'completely lopsided' that it did focus on proprietary trading', she says. 'Prop trading has nothing to do with anything - it did not get us here - [and] was not one of the reasons for the financial collapse.' ..."
Although Bartiromo is referring to bank/deposit institutions' proprietary trading, it's long been obvious to other prop traders that the fallout from government regs also affects the originally unintended.
http://finance.yahoo.com/tech-ticke...romo-weighs-in-on-reg-reform-yftt_535488.html
In the subsequent Tech Ticker article, here are two of the notations about her video comments (link below) on the current financial regulation reform:
"... Today, financial firms are engaging in asset sales and the splitting off (or shuttering) of proprietary trading desks in the wake of the Dodd-Frank financial reform. Bartiromo expects this process to continue 'because fin-reg is wide open to interpretation' about what banks can/cannot do with their capital.
... In terms of what hasn't changed, the status of Fannie Mae and Freddie Mac is the biggest issue for Bartiromo.
It's 'just ridiculous' the financial reform bill didn't address Fannie and Freddie and 'completely lopsided' that it did focus on proprietary trading', she says. 'Prop trading has nothing to do with anything - it did not get us here - [and] was not one of the reasons for the financial collapse.' ..."
Although Bartiromo is referring to bank/deposit institutions' proprietary trading, it's long been obvious to other prop traders that the fallout from government regs also affects the originally unintended.
http://finance.yahoo.com/tech-ticke...romo-weighs-in-on-reg-reform-yftt_535488.html
Don, it looks like CBOE firms are going to move to a 90/10 payout model. Better then Goldman but still a disappointment.
Quote from Maverick74:
Don, it looks like CBOE firms are going to move to a 90/10 payout model. Better then Goldman but still a disappointment.
That's been the consensus I've collected from a handful of good standing CBOEs. Instead of setting up as a CBSX myself (Cheers to Maverick for dispelling that delusion, I owe you a beer.), I'll just stick with being a trader and be happy.
The way I see it, I'm trading $20+ for every $1 of cash I have in, paying 10% isn't great, but with the commission rate at near cost (or zero with rebates), it is a steep interest rate, but relatively speaking to borrowing capital from a bank or the liability of a fund manager or to to a client, I view it as an acceptable cost of business.
FYI, IB forces Canadian accounts to adhere to the day trading rule on US-listed securities with a minimum $25K deposit as retail, not prop.