Posted by forex at 7:23 AM
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1. Prepare to fill out a lot of forms listing personal information. You will be required to submit a financial statement, documentation that proves you can work legally in the United States, a Form U-4 (showing that you have registered as a broker/dealer) and a copy of the Nominee Registered For Authorization, Guarantee and Certification form.
2. Pay fees required by the CBOE and fill out the appropriate forms to go with the fees. This includes your membership application and fee; your fingerprints and the fee for submitting them for the background check; and a new member orientation fee. All of these fees will run several thousand dollars in total.
3. File all of those forms for your firm by the 25th day of the month prior to any meeting of the CBOE Membership Committee. If that day falls on a non-business day for the CBOE (such as a weekend day, Thanksgiving or Christmas) submit the forms on the prior business day.
4. Wait for your submission to be investigated prior to the Membership Committee meeting. It may be rejected due to CBOE rule violations, an unfavorable credit report or because of a criminal history incompatible with being in a position of financial trust.
5. Submit proof that you have bought, or gotten a loan to purchase, a seat at the CBOE. This will set you back a few million dollars. You may be able to persuade a seat holder to lease it to you, but that won't be cheap either.
6. Get approved by the SEC as a broker/dealer prior to the Membership Committee meeting. Unless you are approved as a broker/dealer, you cannot trade options as an individual on the CBOE.
7. Win approval by the Membership Committee and start trading.