There are two possibilities. One, they are a member of the CBOE. Or two, they are a retail firm disguised as a prop. I know several of these. They are set up as an LLC in retail account with their own capital. there are quite a few firms that do this to escape the regulatory issues.
Thank you, that is definitely the answer. Sorry i couldn't be more clear about what i was asking, but if someone else ever had the same problem... basically many retail firms disguise themselves and prop firms and they were confusing me. Now I understand that all prop firms must have a series 7 and retail firms don't need one. thanks!
Um... Sell Side: You need your Series 7 Buy Side: Not necessary What's the big deal... what's a few weeks of your life studying to pass this test?
Nothing, it's really my curiosity. I like to get my facts straight...they don't affect me at this point in time becuase i have to get the 7 regardless but I'd like to know the proper info.
Actually the Chicago Stock Exchange is our SRO (Self Regulatory Organization), and yes, we have been members of the PHLX as well. All the exchanges require the S7 except (temporarily I hear) the CBOE options firms as Mav states above. All the best, Don
Forget the few weeks, think professional data fees. Having a Series 7 and exchange affiliation costs you some $2500 a year in exchange fees. I can think of a lot better things to do with that money. Martin
LOL, geez I wish it was like Momo described. We operated for years without the S7 requirement with no problems whatsoever. The Regulators require it, plain and simple. Feel free to call any of the Exchanges to ask. All the best, Don