The board of governors at the independent regulator approved proposed changes for US prop firms last week
London-based prop traders have said
proposed US rules over prop firms’ fees for
trading on exchanges could work in the UK and European prop
markets though more work would be required to ensure they were
appropriate for those markets.
US regulator Financial Industry Regulatory
Authority (Finra) approved changes last week to its
communications with the public and trading activity fee (TAF)
rules for US prop trading firms engaged solely in proprietary
trading activity for their own accounts.
Under the rule change, prop
firms’ trading on an exchange – when
trading for their own accounts – would be excluded
from the Trading Activity Fee.
Neil Crammond, managing director at Evoi
and ex-Liffe trader, told FOW: "This could be appropriate in
the UK but the actual cost needs to be right. Prop firms are
not brokers and [are] hopefully liquidity providers.
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