This is from another forum. Tell me what you think.kamdooo Registered: Nov 2004Posts: 54 03-30-05 02:48 PMI asked this question before, but with a small change.Previously, I wanted to know if you could be a broker at Smith Barney and still work at a prop equity firm. The answer was no.Now I want to know if you can work as a broker at Smith Barney/or do an internship, and work at a futures firm.I wouldn't be attaining my license at SB if it were an internship, and the futures firm doesn't require me to be licensed.So is this possible? If not, why?Edit/Delete • Quote • Complainbrokerboy Registered: Oct 2003Posts: 854 New Post 03-30-05 03:06 PMFirst you were getting paid from the broker now you’re working for free. I don’t see the point in doing that but that’s another story. Well if you don’t have a license and you are not getting a paycheck then who is to know you are doing both. If a tree falls in the forest and nobody is around does it really make a sound? If you have no paper trail and no licenses don’t worry but I am sure if you open your mouth there will be a problem.Edit/Delete • Quote • Complainkamdooo Registered: Nov 2004Posts: 54 New Post 03-30-05 04:03 PMso you are saying that as long as I don't receive a paycheck or have a license, its ok?What if SB pays me for my internship? Will that get me in trouble?

What if SB pays me for my internship? Will that get me in trouble?Their contract may forbid this, most banks do. Downside is being sacked.However, right out in the tails is a very deep downside.At SB you will be "exposed" to information which is proprietary and covered by insider trading law.By exposed I mean that it happened near you. A colleague says on the phone to someone else "that stock is gonna die", you've got some info, even if you're not eavesdropping, you're not sure what firm is involved, and you don't even care.All sorts of bad things can happen. Ironically success at futures trading will make your situation worse. Look at it through the cynical eyes of an investigator.Employee of big bank has access to sensitive information. Starts working at an unknown futures outfit, run by a sharp operator. Makes big money.This is not so far from Charlie Sheen in the "Wall Street" movie is it ?SB might sue you, the regulators could get very interested, and with no big firm to protect you, even being cleared can trash your life.The futures firm if it has any sense will drop you like a stone if it found out, hell maybe they'll sue you as well. They will not want to be hassled by the regulators Individuals often aren't sued because it's hard to get any useful amount of money from the,, so SB might just let the regulators screw you over.However the futures outfit is a juicy target, being big enough to be worth suing, but small enough not to put up a big fight. Lawyer heaven.And forgive me for saying this, that's just in the scenario where you act both honestly and within the really huge amount of complex law in this area.You feeling lucky ?Working at an IB, you will get a stream of stuff saying "X is off limits, you cannot trade in their stock until further notice", few people read or care about this stuff because they don't trade actively enough for it to matter. Many firms require that you execute all personal trades through them for just this reason. Usually they also give you a reasonable price, but trading for another firm breaks this rule big time.The probability of this is not that large, but I'd hate to be in it, not watching the movie.

YIKES!Thanks for the info. That sounds pretty terrifying.Would there be any conflict of interest if I worked:1. Merchant banking @ Harvey and Co. + SBOR2 Merchant banking @ Harvey and Co. + futures firmI'd like to get some kind of experience in on the side of the futures deal for a few months, just because the futures firm is completely unknown and the experience there is unrelated to pretty much any other side of employment i can think of. (A.K.A, its nothing to brag about....ever...., although don't get me wrong, i'm happy the head trader is a known figure in day trading...)

I got this packet from SB, covering rules and what not.I read the part of insider trading which reads:"Citigroup policy and the laws of many countries prohibit trading in the securities (including equity securities, convertible securities, options, bonds, and any stock index containing the security) of any company while in possession of material, nonpublic information regarding the company."I'll be trading the futures market. Assume i'm not involved with and indices, and I stick to say the euro...or wheat.Do you still think this is a conflict of interest? The rules on insider trading are focused on stocks. I'd be dealing with futures. I don't even know if futures firms are regulated by the SEC. If I were in an equity prop, then I clearly could not work for SB....but I'm dealing with futures.

I'll be trading the futures market. I'd be dealing with futures. ...but I'm dealing with futures.I think we understand.