SERIES 56 News

Quote from therealdeal:

...*Your going to like this, if your a current trader with a CBOE-CBSX firm and want your initial capital contribution back you can get it right now! For traders who do not wish to take the exam and resign from the firm will be allocated their initial capital contribution back.

P.S.- prop firms/groups will surely be closing their doors with this exam. The overhead will be to much and the entire reason for joining a CBOE-CBSX firm in the first place for traders was (no licensing) which is not the case now. Watch the doors close, only a few survivors will remain in a few months.

Just my opinion on everything.

therealdeal
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It's interesting that the SEC would waive Rule 15c3-1 and allow the trader to get back any locked up capital and quit the firm if they don't want to take the exam. Obviously the firms won't like this, and could spell trouble if they don't have the sufficient capital to maintain their operations.

Do you have this in writing? Look forward to your updated post.
 
Quote from therealdeal:



P.S.- prop firms/groups will surely be closing their doors with this exam. The overhead will be to much and the entire reason for joining a CBOE-CBSX firm in the first place for traders was (no licensing) which is not the case now. Watch the doors close, only a few survivors will remain in a few months.

Just my opinion on everything.

therealdeal
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Actually no. This is the whole reason why firms got into the pay for education business. Sell the training for 10k then make the trader a fully backed proprietary trader. No need for any exams.
 
Quote from Maverick74:

Actually no. This is the whole reason why firms got into the pay for education business. Sell the training for 10k then make the trader a fully backed proprietary trader. No need for any exams.
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regardless, the trader will need to be registered (56) with a firm to have a live trading account even if they do the "training program" "i'm fully backed" model.


scalperjoe
-would only apply to current registered traders not new ones.
 
So, I am new to prop trading and have recently did the paperwork for a prop trading firm in Chicago. I was asked to pass Series 7 and / or Series 55. I wanted to know that with the introduction of Series 56 now ...
What do I have to do ...

Options:
1) Pass Series 7 and Series 55 and then worry about Series 56
2) Pass Series 56 and dont worry about Series 7 and Series 55


Thanks in advance to everyone who reads and helps.
 
Quote from ScalperJoe:

There have been posts regarding this exam since last summer, you can do a search and find the threads.

Not sure about the S7 waiver, however regarding the August 12th deadline, FINRA will probably open the 120 day exam window once a person gets registered, and give the same window for those already trading with CBSX firms.

Hopefully Don can chime in next week after the meeting.
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I'll pass on what I find out next week for sure. My current understanding is that other exchanges have filed to have this S56 as an alternative to the S7 (I know our exchange has, CSX). Not sure about the discussion about the 12 month lock up and how it pertains to this exam situation.

Don
 
Interesting post on the modern telecommuter job site. Not one educational firm has any study material yet for the series 56 test. But they do? Too bad they have the official date for the test deadline Wrong.. Marketing at it's best by them. Finra does not have the 56 test in their system yet to answer any questions if you call them. Its' all too new. good luck with this.





As you know, the SEC has mandated that all registered persons must have his/her Series 56 license by August 11th, 2011 in order to continue trading. In addition, there is currently no study material commercially available for this test. While many firms may be caught off guard by this news, T3 Trading Group, LLC, the industry leader in trading education, is not. We are implementing a comprehensive training program to provide our traders with the tools needed to pass this new exam.

T3 Trading Group, LLC (T3) is a CBSX registered broker/dealer whose proprietary traders focus on intraday momentum, swing, and technical trading of US equity markets. T3, based in downtown New York City, specializes in the development of both new and experienced traders from around the United States.
 
Quote from priyanknevatia:

So, I am new to prop trading and have recently did the paperwork for a prop trading firm in Chicago. I was asked to pass Series 7 and / or Series 55. I wanted to know that with the introduction of Series 56 now ...
What do I have to do ...

Options:
1) Pass Series 7 and Series 55 and then worry about Series 56
2) Pass Series 56 and dont worry about Series 7 and Series 55


Thanks in advance to everyone who reads and helps.
More...

As I said, I'll clarify this more next week. It should be an "either or" regarding the S7 or S56. Some States require a 55, most don't. NYSE members still require a 55 (at this point) I believe, that may change to.

Don't worry too much about this.... as I said before...it should be "much ado about nothing" (or very little anyways, LOL).

Don
 
this #56 test appears to be a standarized test for the industry. so everyone is required to take the test unless they get a waiver. All of the exchanges are on board to accept the 56 license as they do now with with the 7 is the goal. All the exchanges were involved with this process from the beginning & this is the new test all prop traders are required to take unless they can get a waiver. How many traders will get a waiver? everyone should get ready to take this New test if they want to trade. If you don't pass the test by the deadline Aug 12.. Your Suspended from trading until you pass the test. You have to wait 1 month to retest. The cost to take the # 56 test is $ 195.00

Their is still a pending decision by the sec if they will offer a later deadline to take the test? according to the cboe exchange. their trying to give the traders more time & make the process easier for everyone. Only a maybe.. right now it's Aug 12 deadline

these are the facts from talking to the cboe exchange
 
The CBOE suggested calling the SEC directly to appeal for an extension of the deadline. The CBOE's hands are tied if the SEC does not relent as it is the SEC that imposed the deadline, not CBOE.
 
the facts are. the cboe filed for a extension with the sec for a sept or later time line to pass the test months ago. The sec has not decided yet on that request. PENDING.. is seems like their using the aug date since this process has been delayed as it is. Its Official Now. Who knows what may happen with getting a later date. The cboe said they are on the phone with the sec in trying to get a decision on a later date . Who knows? Aug 12 is the Deadline Now.
 
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