Privacy, Business and Law

As reported in BNA’s Securities Regulation & Law Report on October 8, a member of the staff of the Ohio Securities Division has concluded that day traders “who buy and sell securities for another person’s account in the reasonable expectation of compensation from profit on the trades, may be securities dealers” under section 1707.01(E) of the Ohio Revised Code. According to the staff member, Michael P. Miglet, in such circumstances, both the day trader and the day-trading firm he or she uses are deemed dealers, although “only one of them must be licensed in order for the other to take advantage of the exception from licensing requirement for transactions through or with a licensed dealer” under section 1707.14(A)(1)(a) of the Ohio Revised Code. For more, see Michael P. Miglet, Day Trading and Licensing Requirements Under the Ohio Securities Act, 99:2 Ohio Securities Bulletin 1 (visited on Oct. 17, 1999) <http://www.securities.state.oh.us/Bulletin/BUL992.pdf>. See also State News – Regulatory Briefs: Ohio – State News Briefs – Day Traders May Be Dealers, 31(39) Sec. Reg. & Law Rep. (BNA) 1337 (Oct. 8, 1999).