I work at GS and am considering an opportunity at JPMorgan Chase. We have very strict policies for Personal Trading at GS. Essentially, we can only trade certain ETFs that are whitelisted. However, many popular ETFs like ARKx are not whitelisted. If we want to trade a single-name entity, such as TSLA, we have to submit the request in our system, wait for compliance’s and management’s approval, and only after it’s been approved, can we make the trade. There are several problems with this: 1. We must specify the order size for the trade. For example, I would have to specify 100 shares of TSLA during the pre-clearance process. If I would like to buy 150 shares, I have to submit another request for the remaining 50 shares. 2. Must execute order right away. Typically, we only have the day approved and the next day to make the trade. If we miss the window, we must resubmit the trade for pre-clearance. 3. Timelines for approval. I’ve had instances where personal trades took MONTHS to approve as it sat in a MD’s queue. Trading opportunities are lost in this waiting period. 4. All single-name entities must be held for 30 days. This prevents swing trades or earnings plays. Also, I cannot sell puts or covered calls that expire in less than 30 days. Options become even more problematic because you cannot close out positions. You cannot change orders once orders are made. If you request a covered call expiring in 35 days, and it take 10 days to approve, you’re now within the 30 day window and need to resubmit for approval again. GS has the policy which we must abide, but also has technological restrictions. If we attempt to make a trade that’s not pre-cleared, Fidelity displays an error message, and it’s impossible to make the trade. Fidelity also provides GS monthly statements of all trades. With that being said, does JPM/Chase have the same personal trading restrictions? Is it just policy based, where you must understand the policy, but there is no broker level restriction? Are you able to trade single-name entities without pre-clearance (obviously without conflict of interest)?
What is stopping you to open account for another broker and start trading for your personal needs
The same rules apply even if you use a different brokerage.
Another Broker does not share with banks and your employer about your portfolio and trades.
It sucks. I'm with Blackrock and honestly hate the fact that they don't let me trade.
But still you can trade with clearance, right?
Very similar in jpm, at least in AM, I'm sure IB is same if not stricter. Only ones I know that have a more relaxed policy is CCB, think they get only 30 day holding requirement
You know what it is for CS?
No sorry, check the pad white paper on intranet though, I think they are LOB specific
I beg you please don't leave GS buddy. Take me with you.
It's the same at any firm that is regulated by FINRA/SEC.
It’s very similar if not exactly the same, at least in Markets
hows the pay at GS like?
I’m leaving banks for this reason, I missed this bull run, if I have kept my positions prior to joining, I would have extra $400k profits
Think everywhere is the same
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Varies by team. You have to ask compliance.
Just to add, my team doesn't have any restrictions on trading.
What team and location?