So let me get that straight... Most prop traders will need to pass the 56 or else? When's it going into effect? I think that ain't bad, so long as all these firms that churn new traders on training fees and 1 year security deposits don't require the trader to pay the exam fee.
I've been advised to hold off until next week before posting anything in a public forum (and, I want to know more of the facts first as well). In my personal opinion, this is much ado about nothing overall... you can take the SAT or the ACT (I think).... I do feel that having an option, so as to not get too embroiled in regulations that have little or nothing to do with actual professional trading, can and should be a "good thing." The primary intent from the get-go 10 years ago was to simply make a distinction between a retail trader and a professional trader for things like capital usage, wash sales, etc. And... before we start confusing what I mean by "professional" vs. "retail" ... there are many Professional Retail traders.... that don't need capital, and are fine with the rules as they are for investor types. Nothing negative implied on my part. Something to ponder is that, having a S7 might give you something to fall back on in the future if you decide to get involved on the investment side... whereas the S56 may not be of any value in that arena. All the best, Don
This is my first post, just thought I chime in. As of right now CBOE-CBSX Member firms received a letter from the CBOE stating traders need to pass the Series 56 exam by August 12th. There is some clarity lacking on this letter! I believe current traders will have to register by August 12th to take the exam then have a 90 day window to take it. So I wouldn't get ants in your pants and all crazy as you can hold off all the way until November to take the exam. In terms of the waiver, I believe the series 7 will take the place of the series 56 (this would only make logical sense as the CBOE would not want to loose your business/volume and have you join a Finra firm). *Your going to like this, if your a current trader with a CBOE-CBSX firm and want your initial capital contribution back you can get it right now! For traders who do not wish to take the exam and resign from the firm will be allocated their initial capital contribution back. I will be meeting with a few sources next week which will provide more clarity on this. I heard the SEC was pushing hard for the CBOE to get regulated and they wanted something out quick, so I wouldn't look to much into this until updates are out shortly. This is more of a "it's coming soon" signal! P.S.- prop firms/groups will surely be closing their doors with this exam. The overhead will be to much and the entire reason for joining a CBOE-CBSX firm in the first place for traders was (no licensing) which is not the case now. Watch the doors close, only a few survivors will remain in a few months. Just my opinion on everything. therealdeal
REALDEAL.. i agree. the timeline seems correct from what i heard as well. Many more questions need to be answered with this whole process . The failure rate will probably be high initially. Who knows what the passing score will be? The only positive out of this is the 56 license should be accepted by all the exchanges just like the series 7 is now.. so it may open up more choices for the traders. Not many people wanted to have to get a 7 license so the cbsx exchange was a no brainer . Now everyone has no choice but to get licensed if they want to trade prop these days . hold on it's going to be a bumpy ride.
ok, so I guess the next logical question could be, which well known firms are FInra, and which ones are CBSX/CBOE affiliated? (I am looking to get back into trading(already have my series 7), so have been looking around, this just makes my decision more important.)
I'm hearing that those with a series 7 will more then likely be exempt from the series 56. Those with no licenses might be able to get an exemption if they have been in the industry for a while and have professional experience.
This is just wishful thinking. The regulatory bulletin specifically states that you MUST register AND pass the appropriate exam(s). It may change, but right now any discussion to the contrary is speculation.
There have been posts regarding this exam since last summer, you can do a search and find the threads. Not sure about the S7 waiver, however regarding the August 12th deadline, FINRA will probably open the 120 day exam window once a person gets registered, and give the same window for those already trading with CBSX firms. Hopefully Don can chime in next week after the meeting.