I will soon be starting a full time position in an IB coverage group. Recently, I've developed an interest in trading FX and commodities/futures and want to open a personal account. Will I face any compliance issues if I do this? I'm thinking that since I'm not buying equities or ETFs, there is no conflict of interest, right? Can someone please advise?
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1. You absolutely have to report all accounts and pre-clear any trades to compliance
2. The specific policies vary by bank but they will cover them in training. There's also usually a compliance email alias that is very helpful with quick inquiries like this.
That said, have been at two BBs and both only allowed ETF trading, no single names and no FX or commodities.
Also, regardless of trading policy I think every bank has a min hold period, you have to give back profits if sold before that is up - think 60-90 days. This would probably impact your plans.
What about crypto?
Very gray area since crypto is (currently) not a security. I would check with compliance to be sure but I think most banks just don't have jurisdiction over crypto
Kind of horseshit.. is there any way at all to get around this? I love trading and being disallowed from short term trading just because the company has access to information I’ve never seen before is bullshit.
No it's a regulatory compliance thing, so if you get around it you will be fired with potential FINRA actions against you. They take this stuff incredibly seriously - I can think of like 10 different SEC cases around personal trading in the last few years, last year they announced like 7 on one single day.
I'm reading your other thread and looks like you're at a big 4 - to consolidate answers, your firm will not allow you to simultaneously work at a prop firm (or any other financial job) as it's obviously a massive conflict of interest. Just pre-clear and plan your trades around the hold period, 30 days is really not that bad. Not to be harsh but I'm not sure how you think these employee-wide rules at a big firm don't apply to you, or that they would have acceptable loopholes. The firms aren't doing this to be mean to you, it's a big regulatory issue.
If this is that important to you just go work at a trading firm
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