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.

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. Series 4

    A securities license entitling the holder to supervise options ...
  6. Registered Options Principal - ...

    An employee at a brokerage firm that is responsible for supervising ...
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. Budgeting

    Low-Income Households to Get Broadband Subsidy

    The FCC's recently approved broadband subsidy for low-income households should help many people get online. Not that everyone's in favor of it.
  9. Retirement

    Laws That Help Low Income Retirement

    If you're retired – or about to be – and money is tight, look to these programs and other benefits for help should you need it.
  10. Savings

    Check for Lost Property Now – Before a State Grabs It

    You may be richer than you think. There are billions in unclaimed funds in the U.S. Here's how to determine whether some of that money is yours.
RELATED FAQS
  1. What are the differences between a Chartered Financial Analyst (CFA) and a Certified ...

    Understand the differences between a Chartered Financial Analyst and a Certified Financial Planner. Learn how each approaches ... Read Answer >>
  2. What exactly is insider trading?

    An "insider" is any person who possesses at least one of the following: 1) access to valuable non-public information about ... Read Answer >>
  3. What is the Writ of Mandamus?

    Learn how the powerful, but rarely used, court-ordered writs of mandamus can end an injustice and force someone, or a public ... Read Answer >>
  4. Are UTMA accounts escheatable?

    Find out whether your UTMA account can be escheated, the basics of escheatment and who is responsible for maintaining account ... Read Answer >>
  5. Can the IRS audit you after a refund?

    Learn how the U.S. Internal Revenue Service (IRS) can conduct a tax audit even after a taxpayer was issued a tax refund in ... Read Answer >>
  6. How does escheatment impact a company?

    Find out how escheatment can impact a company's bottom line, including what kinds of assets are at risk and what the penalties ... Read Answer >>
Hot Definitions
  1. Keynesian Economics

    An economic theory of total spending in the economy and its effects on output and inflation. Keynesian economics was developed ...
  2. Society for Worldwide Interbank Financial Telecommunications ...

    A member-owned cooperative that provides safe and secure financial transactions for its members. Established in 1973, the ...
  3. Generally Accepted Accounting Principles - GAAP

    The common set of accounting principles, standards and procedures that companies use to compile their financial statements. ...
  4. DuPont Analysis

    A method of performance measurement that was started by the DuPont Corporation in the 1920s. With this method, assets are ...
  5. Call Option

    An agreement that gives an investor the right (but not the obligation) to buy a stock, bond, commodity, or other instrument ...
  6. Economies Of Scale

    Economies of scale is the cost advantage that arises with increased output of a product. Economies of scale arise because ...
Trading Center