Why is a series 7 required by firms for prop traders who are only dealing with equities? I just took it as a sign of good faith...like thy wanted to make sure you'd put in the work to take the test.
Because as a prop trader your are not a "Customer"... You are a "Registered Person" and part of the US Securities Industry. Unlike Customers... Every Registered Person must have no criminal record... Especially for securities related stuff... And take the Series 7... Which teaches you BASIC law and regulations that apply to the Securities Industry. It's a pain... but you will learn a lot.
I donno how true that is...many firms allow you to trade without a series 7, so how could what you are saying possibly be true? Larger companies like GE, AIG etc...who have equity traders working for them also DO NOT require a series 7 license...so again how could what you are saying be true?
Um, they ALL have a series 7 as well as probably a series 55 and others. I dont know who told you that these traders do not hold a 7, but they do. Its a REQUIREMENT not an option.
hmm i've been led to believe that what you said isn't true. Nexis Capital traders do not have any series licenses... Don Bright's responses seem to imply the series license is not required either as he stated "Yes, the series 7 is required for us because we need to keep our squeaky clean image" hinting that you don't need the 7 but it is frowned upon to not have it. So you guys are sure it's required? Does that mean the people trading without them are just breaking the rules and not getting caught?
That's my point. If you read the other thread, someone says "Is the series 7 required for Bright Trading?" Then don Bright responds "yes, we like to keep our record squeaky clean" This implies that while all bright traders require the series 7, the series 7 itself is not required for all traders.
This is not correct. Let me help clear the record here. Whether or not a series 7 is required has nothing to do with the owner's personal desire but the exchange in which they are affiliated with. Don has zero choice in this matter. His firm I "believe" is a member of the PHLX which requires all it's members to have a series 7. The only exchange that does not require it's members to have a series 7 is the CBOE.
Wow, this is exactly the answer I was looking for. It still doesn't clear up with Nexis Traders don't have their 7 though...