Registered Options Principal – ROP

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Definition: Registered Options Principal – ROP

Registered options principal is an employee at a brokerage firm who is responsible for supervising the exposure of options as well as the trading activities on the options within the accounts of the client. The registered options principal acts between the client who makes the order & the exchange member executing the order.

In a brokerage firm, there is generally more than one registered options principal. In most of the cases, one is the designated registered options principal & the other is the alternate registered options principal. The alternate one works as a subordinate for the designated ROP. Both of these positions are mostly taken up by the senior employees in a firm, more specifically, either an officer or a director or a partner of the firm.

In the United States, an individual who wishes to become a registered options principal should pass the Series 4 securities license course given by the National Association of Securities Dealers. In Canada, a potential registered options principal must pass the Options Supervisors Course given by the Canadian Securities Institute. So, any individual who has passed the Series 4 examination can be called as a registered options principal.

They are licensed to supervise the option business of a member firm. A registered option principal can supervise the option business conducted by the registered representatives & can review as well as approve the option trades. So, basically the registered option principal is a brokerage firm employee who is the supervisor of the registered representatives in relation to their client's accounts & the solicitation of the new clients by those representatives.



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