FINRA Now Requires Programmers to Register as Securities Traders

[InfoTech]

http://www.finra.org/sites/default/files/Regulatory-Notice-16-21.pdf

"An associated person who is (i) primarily responsible for the design, development or significant modification of an algorithmic trading strategy relating to equity, preferred or convertible debt securities; or (ii) responsible for the day-to-day supervision or direction of such activities, may register voluntarily as a Securities Trader beginning on the date of this Notice and must be registered as a Securities Trader beginning on January 30, 2017."

 

[nonlinear5]

http://www.finra.org/sites/default/files/Regulatory-Notice-16-21.pdf

"An associated person who is (i) primarily responsible for the design, development or significant modification of an algorithmic trading strategy relating to equity, preferred or convertible debt securities; or (ii) responsible for the day-to-day supervision or direction of such activities, may register voluntarily as a Securities Trader beginning on the date of this Notice and must be registered as a Securities Trader beginning on January 30, 2017."

WTF? This makes scores of software developers (including myself) operating illegally, unless we register as securities traders?

 

[Spectre2007]

Prolly will apply to futures also in the future. At present it just states equities.

http://www.finra.org/industry/series57

Some algo's can be easily deployed in equities that were developed for futures. I wonder what this means for everyone who holds a Tradestation account.

 

[InfoTech]

The rule was approved by the SEC last April, but did not generate significant press coverage:

https://www.sec.gov/rules/sro/finra/2016/34-77551.pdf

It does appear that this will impact many employees of HFT firms, broker-dealers, hedge funds, prop traders, etc.

 

[InfoTech]

Prolly will apply to futures also in the future. At present it just states equities.

CFTC is planning to adopt a similar rule (Regulation AT) that will cover non-equities automated trading strategies:

http://www.cftc.gov/idc/groups/public/@newsroom/documents/file/regat_factsheet110316.pdf

 

[algofy]

Wonder how this affect joe retail using ninjatrader to automate trading strategies?

 

[stevegee58]

I doubt this will affect the average MetaTrader or home programmer rolling their own systems. It's probably aimed at those that publish their systems for profit on places like collective2

 

[algofy]

I doubt this will affect the average MetaTrader or home programmer rolling their own systems. It's probably aimed at those that publish their systems for profit on places like collective2

Hope it doesn't affect one man shops like me.

 

[O(1)]

it seems to be directed toward members and/or their lead developers... unless no strat input given.. in the case of buying an off-the-shelf strat

http://www.kattenlaw.com/The-SEC-Approves-a-FINRA-Rule-Amendment

 

[gkishot]

I doubt this will affect the average MetaTrader or home programmer rolling their own systems. It's probably aimed at those that publish their systems for profit on places like collective2

Why you think collective2 ppl send trades automatically?