Ecosystème des Proprietary Trading Firms : Une Analyse Holistique des Modèles de Financement, des Stratégies de Trading et des Implications sur les Marchés Financiers

Abstract

Since the late 2010s, modern proprietary trading firms “prop firms” have redefined access to financial markets by offering retail traders funded accounts in exchange for passing fee-based evaluation challenges. This thesis investigates the economic, operational, ethical, and regulatory dimensions of these firms through three parts. In Part I, we map the financing models and organizational structures of prop firms, distinguishing between institution-affiliated, independent, and purely online operators, and analyzing their reliance on own capital, leverage, fee-based challenges, and external investors. Part II examines risk-management mechanisms and trader relationships. We detail automated controls and compare them with banks’ and hedge funds’ dynamic risk systems. We then analyze the contractual conditions imposed on traders, their psychological and behavioral effects, and the profit-sharing arrangements. A case study of My Forex Funds, closed by the CFTC and OSC in 2023, illustrates structural failures, platform manipulation, and the industry lessons learned. Part III evaluates ethical and regulatory challenges. We assess conflicts of interest, the “failure-based” economic model, alignment with CFA and MiFID II standards, and divergent U.S. (CFTC/SEC) and European stances that leave a legal vacuum. Finally, we present a quantitative simulation that illustrates the challenge fee based remuneration system and how it can generate a interest conflict between firms and traders. Our findings show that while prop firms democratize trading opportunities, their opaque simulations, asymmetric incentives, and minimal external oversight generate ethical tensions and regulatory gaps. We conclude with recommendations for enhanced transparency, independent auditing of simulated trading, and clearer licensing frameworks to align prop firms incentives with trader and market integrity.