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.