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Series 56 Content
- Thread starter MoneyMatthew
- Start date
Quote from Don Bright:
Maybe, but my discussion point is still the same. The Cboe exam applies to only a small segment of the overall securities industry. You can't work for Merrill Lynch or other BD's with a 56, right?
But, the major point is "why not just take the overall exam?" The one that is accepted everywhere instead of fearing to have to take 2 exams (not that it's a big deal).
Don
The prop firms registered with CBSX will sponsor for the 56, since that is the requirement by CBOE. My understanding is they will not sponsor for the 7, although they accept traders who had prior 7's and are eligible for a waiver.
I agree with your point that taking the 7 has more value overall. However, as mentioned by hitnrun, joining a CBSX firm has specific benefits vs. a FINRA/CSX firm, and therefore by default the traders are getting the 56.
So basically the answer to your question of "why not take the overall exam" depends on which firm a trader wants to register with. Since the Series 7 requires a sponsoring b/d, firms such as yours and Echotrade would be viable alternatives to a trader joining a S56 firm.
Quote from ScalperJoe:
The prop firms registered with CBSX will sponsor for the 56, since that is the requirement by CBOE. My understanding is they will not sponsor for the 7, although they accept traders who had prior 7's and are eligible for a waiver.
I agree with your point that taking the 7 has more value overall. However, as mentioned by hitnrun, joining a CBSX firm has specific benefits vs. a FINRA/CSX firm, and therefore by default the traders are getting the 56.
So basically the answer to your question of "why not take the overall exam" depends on which firm a trader wants to register with. Since the Series 7 requires a sponsoring b/d, firms such as yours and Echotrade would be viable alternatives to a trader joining a S56 firm.
(Serious question) - What exactly are the "specific benefits" - not costs, according to my conversations. Of course, any firm can choose to pass through some of the inherent fees etc. Curious as to other benefits. I have two long discussions with the top people at the cBOE, very good people, but the numbers don't make for any distinctions....so, maybe some other benefits I haven't thought of.
PM if you like, not trying to cause a hassle here on the board.
Don
Thanks! Much appreciated.Quote from ScalperJoe:
Here is the .pdf with contact information at CBOE to order the study guide.
http://www.cboe.com/publish/InfoCir/IC11-067.pdf
specific benefits ? here are some for traders to consider
traders save $ 500.00 yearly in not paying a registration fee like you do with the chicago exchange
possibly getting commission of .0025 or lower is attractive for most high volume traders with a 95 % profit payout with some of the cboe props
maybe the choice to shop 5-10 prop firms with competitive deals
good enough reasons for most traders to consider going with a cboe registered prop firm
of course you have the choice of paying higher fees with fewer choices with others
You have to do your homework to get the best deal that works for you
traders save $ 500.00 yearly in not paying a registration fee like you do with the chicago exchange
possibly getting commission of .0025 or lower is attractive for most high volume traders with a 95 % profit payout with some of the cboe props
maybe the choice to shop 5-10 prop firms with competitive deals
good enough reasons for most traders to consider going with a cboe registered prop firm
of course you have the choice of paying higher fees with fewer choices with others
You have to do your homework to get the best deal that works for you
Quote from Don Bright:
(Serious question) - What exactly are the "specific benefits" - not costs, according to my conversations. Of course, any firm can choose to pass through some of the inherent fees etc. Curious as to other benefits. .
Don
The cost barriers to entry for a trader joining a CBSX prop are lower, in terms of exam costs, registration costs, upfront capital contribution costs, fixed monthly costs and daily variable costs.
If the goal is to trade with buying power, then one CANNOT exclude costs when evaluating a business. Therefore costs must be regarded as "specific benefits" from a trader's perspective.
Quote from ScalperJoe:
The cost barriers to entry for a trader joining a CBSX prop are lower, in terms of exam costs, registration costs, upfront capital contribution costs, fixed monthly costs and daily variable costs.
If the goal is to trade with buying power, then one CANNOT exclude costs when evaluating a business. Therefore costs must be regarded as "specific benefits" from a trader's perspective.
See your PM and response. Some discussion points. All of our ECN rebates are posted daily, and that had nothing to do with the Exchange or anything. Annual fees, and monthly fees seem to be higher according to my discussions. And I agree, costs must be considered, and also the life cost of time as well as cash.
As I've said before, I love the CBSX, and would have moved a while back if it made fiscal sense to the traders. At this point, it doesn't. It has nothing to do with our Firm, we can go anywhere...we're always being "courted" of course.
Buying power, and overnights of up to 30X or more, for good, working strategies. A license that is more useful overall than the 56, not a big deal...as I've always said, the silly tests are just the start.
The interaction of our Firm with our traders is starting to become, how shall I put it without sounding like a sales job..?.... almost fanatical. We are forcing ourselves to make everyone profitable, or metaphorically die trying, LOL. A mandate from my brother is to get rid of those who aren't serious, and focus on the those who actually are willing to get involved on a daily, weekly basis. Those willing to accept the help we offer.
And, no big deal, we'll be here...you just may have to take the silly exam.....perhaps someday, it won't matter.
All the best,
Don
Quote from hitnrun:
don
What is the status of chx getting the approval from sec to accept the 56 license ?
Have you contacted chx recently to get a update on this ?
As recently as 2 months ago, nothing. I'll ask again next week.
Look, you gotta see this from my side.... I could care less about the exams...we want serious traders... and I just hate to see good people with 56's having to take the 7, just to move over here. Of course, they all did it, but I just want good people, I don't care if they got their license at Disneyland for Gawd's sake, LOL.
I just think the 7 makes more sense to most, that's all.
I'll call on Monday, let you know.
Don