SERIES 56 News

Nothing to argue about, Mr Cat ...or do you prefer Mr. Angry, LOL... just kidding....

Dr's and Lawyers have invested tons of money and time to be able to particpate in their profession, as I did in my old public accounting days. It's this "shingle" or "license" if you will, that allows them to do what they do.

Non retail traders are given access to capital, order routing, wash sale rules don't apply, exemption from some taxes...and other benefits... so, IMO, it makes "some sense" (please accentuate the "some") to have a distinction made between the two.

I"m not a fan of over regulation either.... and would be glad to go back to pre-2001 days when there were no licensing requirements..... but we, as a Firm, were forced to comply....in many more ways than just the S7.. we did, and our traders did.

I agree with EVERYONE here, that a reasonable time frame should apply. But, even the S7 people say 100 hours of studying.... to pass their test. The S56 does need to have some study materials made available, sure, I agree with that...and give them some time. But, this is certainly not a "deal breaker" for serious traders... (I do understand that it can be tougher on those with gigantic, long term positions...hopefully thier firms will provide a "work around").

A business opportunity has opened up... for exam prep firms... at least, LOL.

Don
 
Quote from Don Bright:

Hmm, what I don't understand is that this is simply a test that is required to be part of the professional trading community. Most professions require some sort of testing procedure to differentiate them from the "lay" or "retail" (in our case).... Dr's, lawyers etc. It just took a while for some of the other exchanges to "catch up" with the reg's we, and most firms, have had to follow for a decade.
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For what it's worth, studying for this test in just 5 weeks with no study materials is still a lot easier and cheaper than studying for a bar exam. I would expect there to be study materials coming out pretty soon assuming someone started working full time on that around June 20th. Until then I suggest beginning to study by reviewing the statutes and key regulations in Section 4 of the outline. If anyone needs help finding them, send me a message.
 
Quote from Don Bright:

Nothing to argue about, Mr Cat ...or do you prefer Mr. Angry, LOL... just kidding....

Dr's and Lawyers have invested tons of money and time to be able to particpate in their profession, as I did in my old public accounting days. It's this "shingle" or "license" if you will, that allows them to do what they do.

Non retail traders are given access to capital, order routing, wash sale rules don't apply, exemption from some taxes...and other benefits... so, IMO, it makes "some sense" (please accentuate the "some") to have a distinction made between the two.

I"m not a fan of over regulation either.... and would be glad to go back to pre-2001 days when there were no licensing requirements..... but we, as a Firm, were forced to comply....in many more ways than just the S7.. we did, and our traders did.

I agree with EVERYONE here, that a reasonable time frame should apply. But, even the S7 people say 100 hours of studying.... to pass their test. The S56 does need to have some study materials made available, sure, I agree with that...and give them some time. But, this is certainly not a "deal breaker" for serious traders... (I do understand that it can be tougher on those with gigantic, long term positions...hopefully thier firms will provide a "work around").

A business opportunity has opened up... for exam prep firms... at least, LOL.

Don
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You can call me "Angry" or "Cat" or anything else you want, just don't forget to call me to dinner :D

Look, we all spend time and money to become good in our respective fields. I don't know how firms like yours work, but if you're extending capital, etc. to traders then, IMO, it's your and your clearing firm's decision and not some government busybody with no vested interest other than lining its pockets with fines collected from you. No magic happens when your traders take any of the FINRA exams except that wealth is transferred from them to FINRA.

http://dealbook.nytimes.com/2011/07/01/finra-executives-get-big-payday/

If you wanted more serious traders, you could insist on certain educational or exam requirements of people who wanted to do business with your firm. You don't strike me as a man who needs government bureaucrats to separate the wheat from the chaff for him.

That said....it is what it is. I don't have a fundamental disagreement with you, Don. None of the test prep firms have any plans to develop study materials for the 56. The insistence on instant compliance is bizarre.
 
Quote from thunderbolttr:

For what it's worth, studying for this test in just 5 weeks with no study materials is still a lot easier and cheaper than studying for a bar exam. I would expect there to be study materials coming out pretty soon assuming someone started working full time on that around June 20th. Until then I suggest beginning to study by reviewing the statutes and key regulations in Section 4 of the outline. If anyone needs help finding them, send me a message.
More...

Might be nice to share those statutes and reg's links for everyone... ? If not, sure, please PM me.

Thanks,

Don
 
Don,

The exchange rules are very much accessible by googling, fore example, "Box rules" or "Nasdaq rules", etc.

using the "search" box saves a lot of time flipping through printouts (do NOT recommend printing out all the rule book. CBOE's is over 500 pages).

Googling the SEC Acts of '33 and '34, reg M, etc. will take you right to the necessary reg.

As far as I can tell, all of CBSX rules are actually contained in the CBOE rule book (makes sense, I think).
 
DON.. Most trader's were aware that the test was coming & new rules would apply. The problem is the cboe said we would have 3 mos to take the test by the end of Sept. fact directly from cbsx membership dept director. That date has changed. That is the big suprise too all of us. On top of that we are faced with no study materials to prepare for the test. I don't think it's unreasonable for traders to expect a realistic time frame to comply with the new rules. Just a shocker the way this is being handled & the rush to have everyone comply or else. Their is a lack of clarity from the sec on what the exchanges & firms are suppose to do. honest feedback from talking to various prop firms & exchanges and still many unanswered questions on how this will play out. Right now this situation is very frustrating for most of us that trade & want to do the right thing . sec disaster so far.
 
evotrade. good point. the sec may want all traders to take the # 56 test. Their is a possibility to get a waiver ? Why else would would most of the exchanges be involved with this from the beginning with the goal at some point for most of the exchanges to accept this 56 license. It's a industry test. the process is not going smooth so far with pending approval by the sec on some issues with the exchanges. They are not ready yet themselves that is why we have all this confusion & can not get answers to our questions.

The exchange can not answer if you apply for a waiver. How long will it take to get a reply if your approved?

The alternative is to take the # 56 test if necessary .
 
Guys, there is not much as far as help is concerned for the new Series 56 Exam. I am a prop trader and need to take the exam. The only thing I could find is theseries56.com. They seem to have decent study materials, the test questions were definitely helpful, but I'm still waiting on the study manual I ordered to come. Hopefully it comes in a few days. Anyway, hope this helps anyone, and if anyone has any more information, please pass it along. I heard the exam was very challenging and the passing rate was low. More help the better.
-Jack
 
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