..first $25k for PDT and now this, don't ya' love how we all are being "protected", lol...and yes, protected is a "four letter word" in the Trader Dictionary
If a trader has outside accounts, he needs to have those statements automatically sent to his sponsored firm. Now, most guys with 20K at one of these prop firms are not going to be able to manipulate any markets with this amt., so it's kind of crazy that this is a requirement. Maybe if you have 100K or up but not 20K or less.
Don, with so many pair traders at your firm and all the overnight paired postions you guys carry, what clearing firms would you consider? since several clearing firms do not offer the overnight leverage GSEC and Merrill can offer.
Jury is still out on your first note, and we are accepting younger traders who qualify with as little as $10K. Don
Actually the concern is form the other direction...the so called "Trust Fund Baby" potential. If you grandparents left you $5million, but only a small allowance could be taken, but they let you handle the stock positions...one "could" trade obscure stocks and move them to a prop account for cash. Don
We rarely need use the Clearing firm's "leverage" - we stay pretty much even. We need good back office and short stock lists primarily. We have tried other Firm's - but never left SLK/GS - but, as I said previously, we are always exploring our options. Don
Actually that is not the concern. Don you should walk over to your compliance dept and get to know them a little better. LOL. The issue is AML policy which I know your firm must enforce strictly as we do as well. The issue is with having the ability to launder money from one account to another or possibly even launder the money out of the country without a trace. In fact there was recently a case where exactly this was done through two FCM's where over 7 figures was transferred from an account in the US to Russia.