Compliance Registered Options Principal - CROP

In the broker/dealer world, member firms used to be required to have an individual who oversaw and supervised the trading of options contracts within client accounts. That position was called a Compliance Registered Options Principal (CROP). The CROP supervised the adviser, as well as the clients of that adviser.

To become the CROP, that person had to pass the Series 7 exam, and then the Series 4 exam. The Series 4 exam covers non-equity options trading, equity options trading, customer accounts, margin accounts, and option sales practices.

FINRA did away with the requirement for a CROP, and now only requires a Registered Options Principal (ROP). That position still requires passing the Series 4 exam.