Rumors are circulating in Chicago that there is going to be a strict payout rule for proprietary firms/day trading firms that is being imposed soon. Word has it the highest payout percentage is going to be around 80% with the average being 40-50%. It was only a matter of time as this enforcement was coming for the day trading industry. With the Series 56 exam and now this, it seems a certain "entity" want's prop firms to be a thing of the past. Any additional info on this is appreciated!

Hi Anthony,

These discussions have been in talks since the CBOE-CBSX broker dealers started a few years back. From what I know as of now the firm I am with very rarely gives higher then a 90% payout I assume they are "staying in compliance" with showing a profit split. I wouldn't doubt though if a bigger split went into a effect. Keep us posted if you hear anything.  

With the Series 56 exam that came into effect I don't see a profit split happening now (although most firms like to show at least 90/10) for their records.

I believe everything will remain the same with the highest payout being 99%, some give 100% but that's the chance they take from getting looked at by the watchdogs.

I think with the 56 now in effect it gives leverage to firms being able to give whatever payout they like, prior to this license there was all kinds of talks of payouts, rates, etc.. all silent now.