question about licensing / trading with 2 firms

I

incogneo

I am starting OCT 1 with one of the big name PROP firms and about to take the series 57.

I am also in a program trading internship with another smaller outfit and once my work is approved I will need to join the firm that bankrolls their operation (which is a big name wall street firm, not even a prop shop).

my question has only to do with the rules and regulations. I know of people who hand trade + program trade as their business model but all of them do this with the same firm. In terms of SEC regulations, is this viable? Can you only trade with the firm that sponsored you? Can you only trade with one firm?

Feel free to talk as if I know nothing because on the rules and regulations side this is nearly true. Any other problems or suggestions I may run into would be helpful.

Thank you.
 
No. Two unrelated BD will not allow you to dual register. I know of no FINRA/SEC rule against it but they will be asked how each firm monitors your activities without sharing information and working together on regulating you.
 
No. Two unrelated BD will not allow you to dual register. I know of no FINRA/SEC rule against it but they will be asked how each firm monitors your activities without sharing information and working together on regulating you.

thank you for the reply. So if you are right I can't be dual registered. But in general how does it work if I am sponsored by BD1 and then receive an opportunity/offer with BD2? Does the license transfer? And I hold it as long as I am active?
 
Bd1 will have to U5 you. If BD1 has taken your money as 1st loss and used it toward their trading capital, your money is to stay there for a year. Not sure if they have to U5 you.

My advise, trade is a customer account until you decide your path.
 
FSU said:
Bob, is there a problem trading a customer account and an account with a BD at the same time?
More...
Not if the BD allows it. I have a few customer accounts for prop traders and the firm has many. The BD signs a 407 letter( there is a new name for this) and we send monthly statements to your employer. You will be subject to pro-market data fees.
 
Last edited:
FSU said:
Bob, is there a problem trading a customer account and an account with a BD at the same time?
More...

No, the prop BD will have you fill out a disclosure form and send it to your retail BD so they can monitor your transactions for compliance.
 
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