What are the requirements for my firm to become a new PHLX designated member firm?
Pending new members will not be approved for trading by the Examinations Department, unless the following items have been received and deemed satisfactory by the Exchange: • Approval from the SEC as to the new member and their SEC file number. • Business plan explaining the operations and intentions of the firm • Articles of Incorporation • Verification of required funds into a verifiable account of the firm, or if an existing firm, a FOCUS Filing or net capital computation with supporting documents for Allowable Assets • Form BD • Letters of guarantee, and/or error accounts if applicable • PAIB (Proprietary Account of Introducing Broker Dealers) Agreement from clearing firm • If the firm has a Joint Back Office (“JBO”) Arrangement with its clearing firm, the firm must employ or have access to a qualified Series 27 Financial and Operations Principal (“FINOP”).
Related Questions
- Do the designated principals have any reporting requirements once they have completed testing and verifying the members supervisory procedures?
- Regarding Class II. Are Hover and Stare requirements firm for threshold and objectives requirements?
- What are the requirements for my firm to become a new PHLX designated member firm?
