A note of thanks goes to Traders Magazine for reminding us that the deadline is fast approaching for those needing to take the "Proprietary Traders Qualification Exam."  The deadline for passing Series 56 Exam is 9/19/11. 

• Exchanges - including CBOE (Options, Stock), C2 and CBX) - require Series 56.
• ISE requires traders to have either Series 7 or Series 56 accreditation.
• Some exchanges haven't decided on whether or not a trader has to take the exam yet, esp. if the trader already has the Series 7.

The original deadline of 8/12 was pushed back because study material was in short sypply.  Now they're plentiful, so there are no further excuse.

Typically, market makers and prop traders are required to take either the Series 7 exam and/or one of the house exams devised by the exchanges in order to trade - e.g., Nasdaq's Series 55 exam, NYSE Amex's Series 48 exam, NYSE Arca's Series 44 exam.  The new test will likely supersede the house exams.  Still, some exchanges might continue to require new traders to take an orientation test, to ensure they understand the vagaries of the exchange's rules.

Description from FINRA.   Proprietary Trader Examination - (Series 56) (CBOE) – 100 multiple choice questions; 2-½ hours testing time.  This exam qualifies an individual to conduct business as a proprietary trader with certain exchanges.  These exchanges include the Chicago Board Options Exchange (CBOE), C2, The International Stock Exchange (ISE), and the National Stock Exchange (NSX). FINRA does not recognize this exam under its registration rules.

Study Material, Content.   FINRA directs visitors to the CBOE, where they can read and obtain various information, including the following:

• Information Circular 11-67 for a "Series 56 Exam Study Guide and Review."  This was issued 7/27/11.
• Proprietary Traders Qualification Examination Content Outline.  

Beware: "30-30-180" Rule.   For those taking the Series 56, the so-called "30-30-180" rule applies - i.e., a trader must wait 30 days to retake the test if he fails, and another 30 days before applying to take it again, should he fail it a second time. If the trader fails the test a second time, he must wait 180 days before taking it a third time.

For further details, go to:   [TradersMag, 8/19/11]   and  [CBOE TPH Homepage]