Proprietary Trading Firms

Chicago Proprietary Trading Firm Attorneys

Proprietary trading requires the analysis of complex market conditions, coupled with prompt action. Many of the strategies used by proprietary trading firms leave no room for delay, so having a solid understanding of what you’re doing is absolutely vital to your success.

Recent and upcoming changes in federal and state regulations add to the complexity of engaging in prop trading. Whether you are structuring a proprietary trading firm or facing a dispute, you need to be sure you are in full compliance with SEC, FINRA, and CFTC regulations. Having the right legal advising, mediation, and representation on your side will help ensure success in your trading endeavors and protect your investments.

Proprietary Trading Strategies

A well-constructed investment portfolio will involve a variety of strategies and a variety of attendant regulations. 

Hart David Carson represents clients who make use of various trading strategies, including:

  • Arbitrage: This strategy, which includes statistical and index arbitrage, merger arbitrage, and volatility arbitrage, requires swift action on the part of the trader.
  • Long/short equity: This type of trading can be subject to certain restrictions on how much equity you must maintain on long and short positions.
  • Global macro trading: Since this strategy frequently involves making investment decisions in various places of the world, knowledge of foreign investment regulations is required.
  • Fundamental analysis: Analyzing the various factors that may impact a security’s value will require familiarity with market conditions, as well as various legal ramifications.

Knowing which strategies to include in your firm’s practices is a matter of both market analysis and legal expertise. Depending on your firm’s structure and place in the market, certain investments may be unadvisable or even illegal, so it is best to have someone on your side who knows the laws surrounding the trading of bonds, equities, stocks, and other financial instruments.

Regulations on Proprietary Trading

A number of different entities are in charge of proprietary trading standards. These include the SEC, FINRA, and the CFTC.

  • SEC: The Securities and Exchange Commission, or SEC, has the primary role of regulating the documentation and disclosure of securities trades. The purpose of their laws is to promote transparency and prevent fraud. The Final Rule by the SEC prohibits certain types of proprietary trading by banking entities, for example.
  • FINRA: The Financial Industry Regulatory Authority is an independent organization that writes rules for securities and brokerage. They also examine firms for their compliance with the rules and have played a key role in bringing disciplinary action against many of them.
  • CFTC: The U.S. Commodity Futures Trading Commission issues regulations on proprietary trading, including the Dodd-Frank Act and the Vlocker Rule.

The purpose of these regulations is ultimately to protect the general interests of the community. Ensuring that your firm flourishes within the boundaries of these regulations is our goal.

Legal Assistance

With our experience in the areas of law surrounding proprietary trading and investment practices, we are highly qualified to provide legal advising and representation with the following:

  • Regulatory compliance and investigation
  • Due diligence
  • Corporate formation and structuring
  • Documentation practices
  • Tax planning
  • Establishment of trading operations
  • Program trading and arbitrage issues

SEC, FINRA, & CFTC compliance

We have served numerous clients with high degrees of satisfaction. 

To help promote the success of your proprietary trading firm and keep your interests secure, contact Hart David Carson for a free consultation.

Hart David Carson is Committed to Your Success Hear From Our clients
  • "They are professional and driven individuals that are passionate about what they do. They listened and worked with me from beginning to end. I strongly encourage using them! You will not be disappointed!"
    Shannon D.
  • "The breadth of their practice areas allows them to service a broad range of clients and their attorneys vary in specialties, ensuring clients receive exceptional representation in any of the firm's practice areas."
    Mark S.
  • "They care. We were taken with open hearts and open minds when we looked for our special needs trust."
    Daniel B.
When you need a team commited to your rights Work With Hart David Carson

Whether you have questions or you’re ready to get started, our legal team is ready to help. Complete our form below or call us at (630) 931-0379.

  • Please enter your first name.
  • Please enter your last name.
  • Please enter your phone number.
    This isn't a valid phone number.
  • Please enter your email address.
    This isn't a valid email address.
  • Please make a selection.
  • Please enter a message.
  • By submitting, you agree to be contacted about your request & other information using automated technology. Message frequency varies. Msg & data rates may apply. Text STOP to cancel. Acceptable Use Policy