IPO and Prop Trading

Can you buy IPO on Primary offering and sell it on secondary right away as a prop trader?

 

I don't believe a registered member of a Prop Trading firm that is a broker dealer can buy an IPO on the offering at all.
5130. Restrictions on the Purchase and Sale of Initial Equity Public Offerings

http://finra.complinet.com/en/display/display.html?rbid=2403&element_id=4894

 

A prop can only trade an IPO once shares hit the secondary market. You can always get the primary delivered into your outside retail brokerage account.

 

Not legally.

 

Damn...
Just imagine using prop trading firm's leverage to get IPO and sell it on secondary.

 

Even if you were a "customer" and not a registered person, IPOs can't be leveraged and must be paid in cash.

Bad news Bob