Compliance Registered Options Principal - CROP
 |
Definition of 'Compliance Registered Options Principal - CROP'A supervisory and compliance position that FINRA required of options trading firms until June 2008. The CROP had to be one of the firm's officers or general partners and was responsible for ensuring the firm's regulatory compliance for its options trading activities for clients' accounts. The CROP was also responsible for ensuring regulatory compliance in the firm's interactions with the public, such as advertising. The CROP could also act as the Senior Registered Options Principal, another position formerly required by FINRA. CROPs must pass the Series 4 exam in the United States and the Options Supervisors Course in Canada. |
 |
Investopedia explains 'Compliance Registered Options Principal - CROP'Under the changes, FINRA decided that firms could eliminate the position of CROP as long as they continued to fulfill their supervisory and compliance requirements. Multiple individuals became allowed to manage the responsibilities formerly required of CROPs. The changes did not eliminate the requirement that firms appoint a Registered Options and Security Futures Principal (ROSFP) to oversee the firm's public activities, such as the content of advertisements, educational materials and sales literature. The changes also made the ROSFP responsible for ensuring that customers could handle the risks of options trading and understand the transactions proposed for their discretionary accounts. |
Related Definitions
Articles Of Interest
-
Pin Down Stock Price With Real Options
How can you assign a value to what a company may do with its business in the future? We explain how it works. -
Trading Around Key Options Indicators
Learn the key economic indicators to help predict market movement. -
10 Traits Of A Successful Options Trader
If you want to take advantage of the versatility of options, you'll need to adopt these smart investing habits. -
An Introduction To The Options Industry Council
The Options Industry Council is an educational organization for options traders. We introduce you to the Council and the online tools available. -
The "True" Cost Of Stock Options
Perhaps the real cost of employee stock options is already accounted for in the expense of buyback programs. -
How To Use Options To Make Earnings Predictions
Use this simple three-step process to make your own earnings predictions using options data. -
How To Sell Put Options To Benefit In Any Market
As long as the underlying stocks are of companies you are happy to own, put selling can be a lucrative strategy. -
6 Asset Allocation Strategies That Work
Your portfolio's asset mix is a key factor in whether it's profitable. Find out how to get this delicate balance right. -
American Vs. European Options
These two options have many similar characteristics, but it's the differences that are important. -
Pay Attention To The Proxy Statement
Don't overlook this overview of a company's well-being.
Free Annual Reports