Series 7, Why is it required?

Quote from Mom0/pH0x:

emporers new clothes... there are several ways around having to have traders get S7s.... bright is covering HIS ass by requiring it... this way whatever happens, the s7 removes your right to say 'i didn't know' or 'they didn't tell me xyz' if a matter ever goes to arbitration... that's really the end of it... you are a securities professional... if you had no S7, then anything they did halfway wrong they could be nailed to the wall for... the S7 requirement is akin to medical malpractice insurance... that's the predominant reason for the requirement...
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This is completely false. Why is there so much incorrect info on this message board.

Guys, it's very simple. If your firm is a member of any exchange other then the CBOE, you MUST have a series 7!!!

This is not open for discussion, mediation or interpretation. Maybe one day these rules will change. Until they do, this is the way it is.
 
Quote from Mom0/pH0x:

no, i'm pretty sure there are ways around it! namely sub-llc's etc.
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OK, let me try this again. Bright Trading is a member of the Chicago Stock Exchange. As an exchange MEMBER, you MUST have a series 7 unless you are a member of the CBOE. There is no way around this if you are a member of an exchange. If you choose to give your money to some joe sixpack that started an LLC under a member firm, that is your prerogative.

Caveat Emptor....
 
Geez Mav, all this studying done for nothing I guess - but then, what the heck would we know, LOL.

There is no "defending" of this rule or anything else - it is simply what is in effect, nothing of great global significance, certainly no need for some big debate.

Don
 
This only applies to b/d firms that are members of regional exchanges. The reason why firms have memberships to regional exchanges is to get JBO leverage which exceeds retail reg T 2:1 leverage, etc.. All members of the firm must be affiliated with the exchange.

Having said that, there are PLENTY of trading organizations who don't b/d JBO. Some really famous large multistrategy firms aren't broker dealers, nor do they leverage like that. NOR do they require series 7 from their PM's and traders.
 
Quote from Tracy McGreedy:

This only applies to b/d firms that are members of regional exchanges. The reason why firms have memberships to regional exchanges is to get JBO leverage which exceeds retail reg T 2:1 leverage, etc.. All members of the firm must be affiliated with the exchange.

Having said that, there are PLENTY of trading organizations who don't b/d JBO. Some really famous large multistrategy firms aren't broker dealers, nor do they leverage like that. NOR do they require series 7 from their PM's and traders.
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Agree, there are firms that are basically one large retail account, with limited leverage (but they may not need it). From my experience these firms are not 100% payout discretionary firms with independent traders. More often than not they tend to be "employee" type relationships, which is absolutely not a problem IMO.

Now if we could only get this much solid discussion on making some money today, LOL. What's the "over/under" on SPX 1500? Seems like they love the market one day, hate it the next, glad I'm pretty hedged overall, LOL.

Don
 
What if you're in Canada? Would you gain anything from doing it?

Also, what books are best to learn the series 7? I ordered NASD Series 7 for Dummies. Is that a good book?
 
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