Senior Registered Options Principal - SROP

AAA

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.

INVESTOPEDIA EXPLAINS '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.

RELATED TERMS
  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 ...
RELATED FAQS
  1. If I have only a limited amount of time to study for the Series 6, what should I ...

    The Series 6 Investment Company and Variable Contracts Products Representative Qualification Examination is administered ... Read Full Answer >>
  2. For what reasons are electronics stocks commonly purchased by a value investor?

    Administered by the Financial Industry Regulatory Authority (FINRA), the Series 6 exam – Investment Company and Variable ... Read Full Answer >>
  3. What kinds of financial analysis jobs are there?

    The official definition of a financial analyst, per the Bureau of Labor Statistics (BLS), is someone who provides help with ... Read Full Answer >>
  4. What are some common questions an interviewer may ask during an interview for a position ...

    When interviewing for a job at an investment bank, a candidate is likely to answer questions about his career and education ... Read Full Answer >>
  5. What licenses and certifications do you need for a career in portfolio management?

    Traditionally, a career in portfolio management requires a certain level of education, professional licensing, on-the-job ... Read Full Answer >>
  6. What are the most common interview questions for banking / finance jobs?

    Interviews for banking and finance positions are notoriously tough. Interviewees can expect all the questions from a normal ... Read Full Answer >>
Related Articles
  1. Options & Futures

    Introduction to SPOT Options

    Single-payment options trading (SPOT) allows investors to have full control over their investments.
  2. Options & Futures

    American Vs. European Options

    These two options have many similar characteristics, but it's the differences that are important.
  3. Options & Futures

    Investors: Rely On Your Gut

    Find out how your personality and natural instincts can direct your investment choices.
  4. Options & Futures

    Implied Volatility: Buy Low And Sell High

    This value is an essential ingredient in the option pricing recipe.
  5. Investing Basics

    Offset Risk With Options, Futures And Hedge Funds

    Though all portfolios contain some risk, there are ways to lower it. Find out how.
  6. Options & Futures

    Commodities That Move The Markets

    Find out how the everyday items you use can affect your investments.
  7. Options & Futures

    What Is Option Moneyness?

    Get the basics under your cap before you get into the game.
  8. Investing Basics

    The Top 5 Skills Every Actuary Needs

    The actuary profession is growing fast. Here's a look at the majors and top skills one needs to become a successful actuary.
  9. Personal Finance

    What Skills Do You Need For An Investment Banking Job?

    Aspiring for the best paid investment banking jobs? Here is the list of top skills that investment banks look for in job candidates.
  10. Mutual Funds & ETFs

    Top Skills Hedge Funds Look For In Job Candidates

    Lucrative salary, high perks, and best quantitative brains at work. What are the top skills a candidate needs to get a job at a hedge fund?

You May Also Like

Hot Definitions
  1. Net Worth

    The amount by which assets exceed liabilities. Net worth is a concept applicable to individuals and businesses as a key measure ...
  2. Stop-Loss Order

    An order placed with a broker to sell a security when it reaches a certain price. A stop-loss order is designed to limit ...
  3. Covered Call

    An options strategy whereby an investor holds a long position in an asset and writes (sells) call options on that same asset ...
  4. Butterfly Spread

    A neutral option strategy combining bull and bear spreads. Butterfly spreads use four option contracts with the same expiration ...
  5. Unlevered Beta

    A type of metric that compares the risk of an unlevered company to the risk of the market. The unlevered beta is the beta ...
  6. Moving Average - MA

    A widely used indicator in technical analysis that helps smooth out price action by filtering out the “noise” from random ...
Trading Center