Series 57
What Is Series 57?
Series 57, otherwise called the Securities Trader Representative Exam, is an examination administered by the Financial Industry Regulatory Authority (FINRA). Breezing through the Series 57 exam is a requirement for the people who wish to become professional traders of either equities or convertible debt securities.
How Series 57 Works
The purpose of the Series 57 exam is to safeguard the public by guaranteeing that professional traders fulfill a required guideline of professional information and skill. Notwithstanding the Series 57 exam, would-be traders must likewise pass the Securities Industry Essentials (SIE) exam. Once both are completed, section level traders are certified to conduct trading on the Nasdaq exchange or over-the-counter (OTC) transactions, and may likewise conduct proprietary trading activities.
The Series 57 exam is intended to mirror the current advances and practices of professional securities traders. In that capacity, its inquiries are drawn from interviews with genuine professionals and trading firms active in the field. By persistently refreshing the Series 57 exam considering new improvements in the industry, FINRA desires to guarantee that the people who breeze through the exam will be exceptional to work with the public in both a capable and ethical way.
Important
To take the Series 57 exam, candidates must be affiliated with and sponsored by a FINRA member firm or other self-regulatory organization (SRO). The candidate must likewise pass the SIE to become registered as a securities trader.
The Series 57 exam has received several updates over the year that reflect progressing changes in the industry. The latest substantial change to the exam happened in January 2017, when new areas in regards to high-frequency trading (HFT) were added. This was finished in the wake of different reports including unethical behavior by some HFT firms. This change just influences new Series 57 candidates, though the individuals who passed the previous forms of the exam are not required to be re-tried on the new material.
Example of Series 57
Dorothy is an understudy at a financial firm that offers investment management services for their clients' accounts. During her entry level position, Dorothy gains from the firm's authorized traders and fosters an interest in trading stocks and convertible debt securities. She likewise becomes interested in algorithmic trading strategies, like HFT.
As an understudy, Dorothy comes up short on authorization to straightforwardly take part in these types of trades. To assist with furthering her career, she, therefore, chooses to take the Series 57 and SIE exams. To pass the Series 57, she must response 50 numerous decision inquiries shortly, replying something like 70% of them accurately. Each question has just a single best response, and they range in degree of difficulty. Among them, 82% comprise of inquiries concerning trading activities, while 18% comprise of inquiries viewing administrative activities, for example, keeping up with accurate records and accurately reporting on trades.
Whenever she has gotten her Series 57 and SIE certifications, Dorothy will be free to seek after professional jobs as a trader of equity and convertible-debt securities. Hence, she sees the Series 57 and SIE examinations as an important venturing stone in her future career.
Highlights
- The Series 57 exam is an important exam for financial professionals.
- The Series 57 is administered by FINRA and comprises of 50 numerous decision questions. Its subject matter is refreshed consistently to reflect new regulatory and innovative changes influencing the industry
- The Series 57 exam is an essential for those wishing to trade equity and convertible debt securities.
