this completely sucks

Discussion in 'Financial Futures' started by crtrader, Jun 29, 2008.

  1. crtrader


    I work for a major bank on the banking side and recently obtained my securities liscenses. Now they want me to switch all my accounts. The firm has no futures only ability to buy calls and puts and stocks no realtime quotes, Is very expensive and fee heavy, and has a website that rivals Mrs. Pacman video game. Is extremely fee heavy has no after hours or pre market , is completely a nightmare for a serious trader. Mind you i don't only have regular futures and options accounts but even a futures ira. Does anyone have any ideas on how to avoid the switch. Is this a sec regulation or something. I am trying to find some way out of this. If any one has any ideas i would be extremely grateful.
  2. TYtrader


    This seems to be your bank's policy, not an SEC rule. Why couldn't you have accounts with another broker? There is no reason for that.

    The bank is probably worried about trading you might do in your personal account ahead of customer orders or otehr conflicts of interest. Keep in mind, I am not a securities lawyer, so I don't know this for sure, but if you disclose everything, you should be okay. Explain to them that the fees for transferring and other costs are too high to make the move. You would prefer to keep your accounts the way they are.

    Then, look for a job at another bank if that doesn't work. Try working for the firm that currently has your accounts. lol.
  3. This is an NASD or SEC rule. As a licensed representative, accounts held at an outside BD/IB/etc MUST be marked as such. This "rule" has been in effect for at least 20 years. When I sat on an OTC trading desk, my personal account at EFHutton (remember them) had what was essentially a direct-connection to the compliance department of my firm. I was not forced to relinquish my outside accounts, but they were tagged and flagged.

    Here is a paragraph from Finra...
    "It is important for you to understand that as a registered representative, you are an agent of your member firm. Whether you are an employee or a so-called "independent contractor" (for regulatory purposes there is no distinction between the two terms), you are obligated to follow all applicable securities laws and regulations. For example, you must get clearance from your member firm for certain personal financial activities. Accordingly, you should discuss with your supervisor any financial accounts that you or members of your immediate family have with other securities firms, relationships with other businesses, and any forms of compensation you receive from any source other than your firm."

    Here's the link...