Senior Registered Options Principal - SROP


DEFINITION of 'Senior Registered Options Principal - SROP'

An officer or general partner of an options trading firm who supervises options exposure and trading activity in clients' accounts. SROPs also must have passed the Series 4 exam. FINRA eliminated the requirement for firms to have an SROP in June 2008. It also eliminated the requirement for firms to have a Compliance Registered Options Principal (CROP) to oversee the firm's regulatory compliance for its options trading activities, a position that was sometimes held by the SROP.

BREAKING DOWN 'Senior Registered Options Principal - SROP'

FINRA decided that multiple employees could manage an SROP's former responsibilities as long as the options trading firm continued to meet its supervisory and compliance requirements. Anyone supervising a firm's options and security futures business, including its sales and advertising activities, however, must be a Registered Options and Security Futures Principal.

  1. Compliance Registered Options Principal ...

    A supervisory and compliance position that FINRA required of ...
  2. Registered Principal

    A licensed securities dealer who is also empowered to oversee ...
  3. Head Trader

    The manager of a trading business. He or she is responsible for ...
  4. Option

    A financial derivative that represents a contract sold by one ...
  5. Registered Options Principal - ...

    An employee at a brokerage firm that is responsible for supervising ...
  6. Series 4

    A securities license entitling the holder to supervise options ...
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