Structure
Active traders in a Hedge Fund, Proprietary Trading Firm, or other “retail” trading operation are usually subject to credit-based margins under the Federal Reserve Boards Regulation (“Reg-T”). While REG-T is a viable approach, its focus is on the extension of credit rather than an assessment of actual risk, and does not take into account risk mitigating advantages of the professional trader such as real time risk management tools interest rate advantages, tax status, trading structure, access to floor execution, and other software tools.

Market Compass, Inc. provides expertise and is able to utilize its unique relationships with clearing firms, professional floor brokerage firms, financial tax attorneys, accountants, market makers and market data providers to create a solution that suits your needs. Our staff has experienced professional engineers, market makers, brokers, and risk managers, and has access to financial tax and legal counsel to create the right legal structure for your trading entity.

If you are a currently operating under the constraints of REG-T margins and are looking for ways to better leverage trading capital by having your risk mitigation strategies acknowledged and understood, then you should consider becoming a broker-dealer and establish a JBO arrangement. Market Compass, Inc. can help you organize and structure a complete broker-dealer trading operation. We can help address all the issues involved , quickly, and help you improve your access to the market, better leverage your capital, and reduce your trading.

Here is a brief outline of the services we provide:

Design Trading Operation Help in setting up a legal entity (LLC, Partnership, Corporation)
1. Help register a Broker-Dealer
2. Instruction on the benefits of a JBO
  (Differences between REG-T and Risk Based Haircuts)
3. Initial Tax & Legal review*
4. Provide Cost benefit analysis
5. Introduction to clearing firm
Evaluate and Recommend Trading Solutions
1. Data-providers
2. Portfolio and Risk Analysis Software
3. Floor execution consulting
4. Strategy Design Software (if needed)
5. Computer Systems (if needed)
6. Acquiring office space (if needed)
Liaison for Documentation
1. SEC, Exchange, and Reg. Departments Filings*
2. U-4, U-10, NASD documents*
3. Focus Report consulting*

(*Does not include fees attributed to legal, tax preparation, and regulatory filings)

For more information click on the link below.

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