CBSX and FINRA Registration

Discussion in 'Prop Firms' started by VinMan, Dec 14, 2011.

  1. VinMan


    Does anyone know how/if a FINRA registered rep can also be a CBSX registered trader (provided each firm is on notice and approves)?

    Does the CBSX registration prevent you from beind FINRA registered or vice versa?
  2. FINRA Series 7 "waives" the need for the 56 at CBSX last time I checked. If that's what you're looking to do.

    If you're asking about "dual registration" - then I kinda doubt it.. but maybe if, as you say, both firms are ok with the liability factor.

  3. rmorse

    rmorse ET Sponsor

    It's my understanding that dual registration is allowed, but difficult to enable. Both firms would have to allow it, find no conflct of interest and have written supervisory procedures that address it. Since most WSPs either don't address it or not allow it, it's difficult in practice.
  4. CBSX firms have dual-registered trader. I have been registered with FINRA firm and CBSX firm trading at the same time. you have to keep on filed acknowledgement of the dual registration from both compliance managers and keep those on record for the rest of your life.
  5. OK, you're saying you're registered with 2 broker dealers, one a FINRA (Series 7 type, or 55 etc.) and also with a CBSX Broker Dealer with Series 56 (or waiver). Is that right? I'm just curious as well.

    We have had a few "dual registrations" in the past, but not for a while.

  6. VinMan


    I am not but would possibly like to be yes.

    I was not sure if the CBSX reg would require approval to be FINRA reg. I know the FINRA reg would need to be approved.

    Did not think of WSP issues.

    Basically, would like to continue consulting while at the same time prop trade.
  7. rmorse

    rmorse ET Sponsor

    It can be one if both firms are willing to do the work. During an exam of the broker dealer, the examiner will see the dual registration. They will ask how the firm plans to:

    Check e-mails, instant messages, social media, stock trading, anti-money laundering, etc when two unrelated BDs are involved. If both firms can put forward a plan in their WSP that covers your situation, your fine. Most WSPs don't want to address it, so they state they don't allow dual registration.

    Some CCO will be lax and allow it and hope it's not an issue. A well trained one will protect the firm from problems and address it. Either way, if you don't lie and cover yourself, it's their responsibility to take care of it, not yours.

  8. Yeah, pretty doubtful. No "consulting" within the industry while a registered trader. Probably will have to choose between the two.

    Good luck either way...

  9. VinMan


    Are there international prop firms that do not require the registration? I'm probably somewhat of a unique case being someone that has the license but needs to trade without registration, more of a retail setup with my firm's OK and receiving dupes for compliance.

    That would be easier than dual registration...if it exists.
  10. rmorse

    rmorse ET Sponsor

    I sent you a PM. You can open a Customer Portfolio Margin account and send copies of your monthly statements to your firm.

    Legal and very clean......Bob
    #10     Dec 21, 2011