Hello,
Are there any regulatory concerns around hiring people to punch trades on your own capital ? I have accounts with multiple brokers including zerodha and the equity distributed. Do the traders have to be NISM equity derivatives certified ? Also, what are the benefits of starting a proprietary desk against trading like this ? @nithin
There isn’t any regulatory issue as such in hiring people to punch trades. The issue will be if those people punching trades manage your money. Even in that case, the problem would be for the person acting like an advisor without a registration and not for you.
NISM certification is required if those dealers are punching orders on a dealing terminal of a broker. No need for certification if they are logging in to your internet-based trading platform.
A proprietary desk usually refers to a setup where you become a broker yourself. In this case, you can hire dealers and give them access to dealing terminals to place trade. The benefit here is that multiple dealers could be placing orders on the same account at the same time, which isn’t possible in internet-based trading platforms.