If you call cbsx and ask them about their current licensing situation they will indeed tell you they have been talking with the sec for the last few months on this topic and that this current unlicensed model will not be around much longer and the best they are hoping for is some sort of grace period to allow unlicensed trader time to get their licence. Cbsx has known this for a while but seems to be fighting tooth and nail to prolong this as long as possible in efforts to take as much market share as possible from finra.
No truth to this. I have discussed this with Don over PM at length. I have tried exhaustively to explain to him that the CBOE has by far the most strict registration policy. If anything, the other exchanges will have to change their policies to what the CBOE does and that would put 90% of ET members out of the prop game. Don struggles to under the ramifications of this.
Stay tuned, more info coming.... I'll PM you when I get some additional clarification. A bit busy this week, our SRO is visiting. (not struggling, LOL). Don
I have talked to several people out here as I "work" in the building. As I explained to Don, it's the CBOE that is ahead of the curve, not the other way around. If anything is being discussed, it's how to get the other exchanges to "properly" register their traders, and no, that does not mean getting a series 7. Do you even know why so few firms register with the CBOE? Don't you think there is a reason for that? Think about it.
Question then: Could you explain (w/o your typical condescending attitude) then why are all these former sub-llc's are registering their b/d thru the CBSX rather then another exchange or FINRA? If it is so much more restrictive, I would see these shops registering the firm elsewhere, not the hardest route.
I'm not being condescending or that is not my intention. Let me also make clear I am speaking about membership of the CBOE, not the Chicago stock exchange (CBSX). It is my understanding the process is different for them. When Don first brought this up, he mentioned CBOE, not CBSX which caused me to respond to him directly via PM. There are only 3, maybe 4 prop firms that are registered through the CBOE. I have no idea how many prop firms are registered with the CBSX. If you don't mind, would you care to name some of them? Don, feel free to name some of them as well. I believe I asked you for some names over PM but you never gave any.
First off, a note to everyone.... Maverick is a stand up, straight talking guy... he and I may have differences of opinions at times, but have always respected one another. Now, we are members of the Chicago Stock Exchange, not the CBOE (currently anyway, have been in the past)... we could certainly buy another membership if that would make things any easier or better for our traders. There are changes afoot, and I am still acquiring data... and will share as I know more... this is not a P & R forum, nothing major going on here... just regulatory issues....we'll all work it out. Give this a week or so, and I think I will be able to shed some light on what may be some minor nuances here. All the best, Don
I have a question. If a firm does not require its traders to put up any capital and backs it's traders 100% would the traders still need to even be registered?