Helping an old firm or a new one to self-clear used to be relatively easy, but now it’s a “nightmare,” according to an InteliClear executive.
Robert Victor, InteliClear’s managing member, claims FINRA is now interpreting the rules in such a way that it takes much longer to win self-clearing approval
“Recently, FINRA has made it almost impossible for new or existing firms to go self-clearing, so we’re not finding a lot of firms out there looking for new systems. The road is very difficult,” Victor said.
Previously, he said, it would take six months to win approvals for a self-clearing brokerage. Now, he said, “it can take a year or more to win approvals.” Many firms are giving up, Victor said.
InteliClear says it is seeing much less self-clearing business. FINRA denies the charges. Approvel times “have held steady” over the past few years, according to a FINRA spokesperson.
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