Large Trader Registration

[hajimow]

I see. Would that I could. My brok frm got back to me and said I passed the threshold 4 times last month. So in this instance I had to. The best advice I can give anyone that needs help though. Their customer service and tech support lines are absolute gems. Easy to call and interact with. Very helpful.

My knowledge is limited on that. It seems that you can talk to your broker and ask the same question whether you have to register or not and what happens if you don't and how it will affect your tradings in terms of commissions , data feed registrations,.... after .you sign up

 

[Califragilistics]

Spy is not an index option though so it uses the underlying's price since it isn't a cash settled option. So it would be related to the earlier example they give.

Ah, got it. I stand corrected. So you would, indeed, multiply by the underlying's price in the formula.

 

[dealmaker]

Hi all, i am a relatively new trader (about 12 months live trading in options). I just recently got contacted by my brokerage to register as a large trader with the SEC. Has anyone run into this and had to register? I am confused about the process of obtaining what they call a "CIK" key. Any enlightenment would be much appreciated.

Here is an SEC comment
Establishing a Registration Framework for Dealers and Major Participants in the Derivatives Market

http://www.sec.gov/news/statement/establishing-a-registration-framework-for-dealers.html

 

[SPYAlgoTrader]

I anticipate running into the "large trader 13h" requirement as well due to many scalping trades - I am currently trading as an individual - would be advisable to trade via a LLC or s corp? can "large traders" expect more IRS audits etc? any downside for being a registered a large trader (besides the paperwork)?

 

[rmorse]

I'm not sure why the larger trader rule would define why you would choose to be an individual trader or use an entity. They are independent decisions that are unrelated. When I was a full time trader, I choose a single member LLC to protect my assets outside the LLC, give me the opportunity to create a profit sharing plan and more easily right off expenses of the business.

Bob