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Series 7 & 63 when is it needed?

Wallstyouth

Vice President
Joined
5/25/07
Messages
116
Points
28
When is a series 7 and 63 really needed? It seems as if most quants dont really need it because there not really trading? Yet I see most of the trade support guys and portfolio managers with this certification for obvious reason....

Is this really a grey area in the industry? Should one only get a series 7,63 etc... only when they are trading on the behalf of external clients? When exactly does one need to get these ceritifications?
 
When you move to a front office role and interact with external clients. Not required in IT.
 
When you move to a front office role and interact with external clients. Not required in IT.

So If your a quant on a prop trading desk writing all the models that buy and sell on behalf of the firm who in turn is investing high networth clients capital into this fund a series 7/63 isnt needed?
 
prop trading desk = front office ;)


Generally, you need the series 7 when you interact with external clients or conduct transactions on behalf of clients. It is a regulation requirement, not a CV embellishment. The fact that you are asking means you don't need the series 7 license for your job. Your group will sponsor your series 7 when they require you to have one. If you need further clarification, please conduct research through Google.
 
So If your a quant on a prop trading desk writing all the models that buy and sell on behalf of the firm who in turn is investing high networth clients capital into this fund a series 7/63 isnt needed?

If you need it, your company will let you know. You need a sponsor in order to get them.

For example, I have never seen a client in my firm but I must have the licenses regardless.
 
There doesn't seem to be a clear list of who is required to take the exam. Banks seem to overdo this more than hedge funds. They seem to require everyone in a group to have it regardless of their individual roles.
As mentioned, this is just a business requirement, not a designation like CFA. Just like a firefighter is required to pass CPR exam and no firefighter boats that he passed CPR ;)
Company will sponsor and pay for your exam, regardless if you ever use it. Series 63 only needed in some states. Series 7 will do for the most part.

Can anyone can recommend some useful guides, books for series 7 ?
 
I think the firm will provide a useful guide to the Series 7. During a previous internship, I was supposed to be qualified and was given a guide with all of the important parts highlighted.

Of course, due to complications with the company's internship department, none of us received sponsorship :-k.
 
There doesn't seem to be a clear list of who is required to take the exam. Banks seem to overdo this more than hedge funds. They seem to require everyone in a group to have it regardless of their individual roles.
As mentioned, this is just a business requirement, not a designation like CFA. Just like a firefighter is required to pass CPR exam and no firefighter boats that he passed CPR ;)
Company will sponsor and pay for your exam, regardless if you ever use it. Series 63 only needed in some states. Series 7 will do for the most part.

Can anyone can recommend some useful guides, books for series 7 ?


Andy,
I believe the CFA can substitute for the Series 7 and 63 but I think it's more expensive. Not sure what the series cost. If someone where interested in the CFA should they begin before or after a MFE or Ph.D.? I believe after because if its required you may get sponsored. Regardless its pretty neat to stay on your toes
 
I believe the CFA can substitute for the Series 7 and 63 but I think it’s more expensive. Not sure what the series cost. If someone where interested in the CFA should they begin before or after a MFE or Ph.D.? I believe after because if its required you may get sponsored. Regardless its pretty neat to stay on your toes

That's a nice believe but it is incorrect. :)

Series 7 and 63 are licenses with the SEC. If you don't have them you are not allow to handle clients money (Series 7) among other things. The CFA is just a title, not a license. The CFA just says that you are a Chartered Financial Analyst, like the FRM and the PRMIA (?) for risk.
 
Andy,
I believe the CFA can substitute for the Series 7 and 63 but I think it's more expensive. Not sure what the series cost. If someone where interested in the CFA should they begin before or after a MFE or Ph.D.? I believe after because if its required you may get sponsored. Regardless its pretty neat to stay on your toes

Series 7 is a one time, 6 hours exam.
CFA is 3 level exam. You obtain the CFA designation after you pass level 3. It usually takes 2 years at the earliest to pass since each level is offered once or twice a year, I believe.

CFA costs way more than Series 7. If you get sponsored to take the tests, the firm will pay.

Series 7 is easier to pass. I have a friend who studied in 2 days and pass in first try. He is a structurer who is familiar with SEC laws, regulation so it's easier for him.

When to study for the exam ? NOW.

You can take CFA Level 1,2 if you want to pay. When you get a job, your firm will sponsor you for Series 7 or CFA.

I don't know what you will use the exams for but if you like to take it, go for it.
 
That's interesting - I heard that comment from a teacher. I'm glad I found this blog, information backed with proof. :thumbsup:
 
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