A company is interested in hiring "Benjamin" as a C++ developer, supporting trading systems for a relatively large (Market Cap > $1B USD) investment bank in NYC. Said firm is a "FINRA-registered broker-dealer." How would Benjamin's acceptance of a professional position with this firm affect his ability to day-trade? Googling around has revealed the following answers, which differ depending on the source: 1. Don't ask, don't tell... no restrictions at all 2. No day-trading. Period. 3. One-day waiting period on all trades. 4. 30-day waiting period on all trades. 5. All trades must be approved by the firm's compliance department. 6. Other limitations, such as limits on number of trades, and types of financial instrument; e.g., no bitcoins, etc. Can anyone shed any light? Thx, Keith :^)
When a registered employee of a broker dealer wants to open an account for their own trading or where they will have any authority over anyone else's account, their employer must approve the opening of the account and get monthly statements.
you cannot day trade if you work for a bank, broker dealer, hedge fund, legitimate prop firm. You need to disclose what you plan to buy (no shorts), they approve it, and you have to hold for +30 days. There's a reason why all these firms have compliance personnel now.
There are two ways that Benjamin can find this out: 1) The best way is through compliance department from his investment bank as they are the ones who make rules to comply with regulators. Compliance officers are the ones whom Benjamin will get trouble with if what he does will create a conflict of interest at work. 2) Check his employment package, which there should be a legal document specifying what he can or can't do at work. IMHO, it depends on what kind of access level that he possesses. The higher access he gets, the more likely he isn't allowed to trade. The only exception is that if he has only access to support trading systems with bonds related market, then it shouldn't be affecting him to trade equity/currency related market and vice versa.
Thanks everybody for your responses. This position (like most C++ positions), would require significant access, as Benjamin would be part of the team that supports the major plumbing of the firm. He'd be ensuring proper order flow from the firm's brokers to the exchanges, etc.
BTW, you won't get into any trouble by speaking with your compliance department. Just mention to your compliance officer that you/your spouse do have some investments in whatever market and whether or not you should disclose it to your firm. Your CO will be more than happy to figure it out for you. If your compliance officer can't provide you with the answer, he/she probably will speak to chief compliance officer and get back to you. Good luck.
Again, check with your compliance department and they will give you the right answer that you are seeking.
It's 100% up to his employer what he will be allowed to do. It will vary from employer to employer. He will have to ask. Every brokerage firm application asks if you or a member of your immediate family are an employee of a broker-dealer. If you say yes, they are required to get a 407 letter from your employer. http://www.investopedia.com/article...sors-and-brokers-need-know-about-rule-407.asp
Eek... this stuff is no joke, eh? NO SHORTS!? What if a stock is plunging and Benjamin wants to get onboard?