Anyone who knows the law/NASD rules please help

Discussion in 'Professional Trading' started by johnnycakes, May 28, 2006.

  1. Hi all -

    To make a long story short, I accepted a job working at prop trading firm right out an Ivy League undergrad with a 3.5 because I was having difficulty getting an offer without a true finance internship. After reading this board, I now realize this will hurt my resume taking this job. Recently I got an offer in the debt capital markets working at a reputable I-bank. . I want to break my written contract with the prop trading firm and work at the place I got the new offer. There was no penalties described in the contract, but I have already registered with the NASD and my firm has already signed me up for the series 7. My question is, what do you think my firm will ask for once I break the contract (again, no penalties are specified in the contract), and what will I have to do with respect to the NASD to clear the fact that I am not actually working for the firm that they think I'm working for. Do you think it's going to create a problem with the NASD because I'm signed up and I'm breaking the contract - or is it a simple phone call to fix up. My dad knows some lawyers who seem to think all that will happen is that I might owe the prop trading firm a few hundred to make up for the series 7, and people do this all the time. Anyone know anything about the NASD thing, I would greatly appreciate any knowledge. I realize that I suck for breaking the contract but it doesn't make sense when I can do so much more with my degree.

  2. toc


    There should not be any problem with NASD, they might withhold the registration fees etc.
  3. You might be on the hook for S7 course, registration and training materials. Talk to a compliance officer at your new job. Have you put down a deposit with the prop firm?
  4. No I didn't have to put down a deposit... What do you think those fees might add up to? I'm not taking a course they just sent me a photocopy version of the STC manual.
  5. wabrew


    You probably just answered your own question.

    If the Prop firm gives you any flak, let them know that STC will not be too happy when they learn Prop firm is using photocopies (probably copyrighted) of their stuff.
  6. To register for the test is, I believe, more expensive than to move your licenses which is about $230. You might be able to get even this money refunded if you have not scheduled the test yet. You are definitely on the hook for the fingerprints which is $20 or thereabouts. I wouldn't be losing any sleep if you have not received any paychecks from the prop firm and if you have not put down a deposit. Moving registrations should be a mere technicality.
  7. Most civil matters of this type hinge around what is in writing. To evaluate this your best bet would be to consult a lawyer. Most contracts describe what happens when/if the contract is terminated. If yours doesn't, they have a problem. But again, have a lawyer evaluate the actual contract, not just your description of it.