NYC biglaw firm with fewest trading restrictions?

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NYC biglaw firm with fewest trading restrictions?

Postby Anonymous User » Wed Jun 12, 2019 10:59 pm

I'm heading to biglaw in NYC this fall at a firm that mostly does finance in all its different forms.

The general trading restrictions at my firm are:
* pre clearance of all trades (buyer or sell) to check with firm's restricted list
* no buying options, except on broad based indexes/ETFs
* no selling options unless its selling covered calls on positions
* holding period of 6 months for any position taken
* spouse subject to same rules unless employed by hedge fund/bank

I've done well trading in law school and have grown my Roth IRA. I'm annoyed that there are such stringent rules and I anticipate it will be the reason I eventually leave my firm. Though I am stoked to rollover 401(k) plan into my Roth every year. Good-fucking-bye to $6k/yr limit.

So, my question is, which firms have the most lax securities trading policy in NYC BigLaw?

2013

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Re: NYC biglaw firm with fewest trading restrictions?

Postby 2013 » Wed Jun 12, 2019 11:11 pm

Most big firms in NY will have similar restrictions, unfortunately. Just wondering why you’re going to rollover every year? You can just do a roth 401(k) to save some of the headache unless your firm allows for after-tax deductions and you’re trying to do a backdoor roth/mega roth. Also, something to consider is that some firms don’t offer after-tax deductions up to the statutory limit (54k? Or something around there).

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Re: NYC biglaw firm with fewest trading restrictions?

Postby Anonymous User » Thu Jun 13, 2019 12:06 am

2013 wrote:Most big firms in NY will have similar restrictions, unfortunately. Just wondering why you’re going to rollover every year? You can just do a roth 401(k) to save some of the headache unless your firm allows for after-tax deductions and you’re trying to do a backdoor roth/mega roth. Also, something to consider is that some firms don’t offer after-tax deductions up to the statutory limit (54k? Or something around there).


OP here. I like managing my own money rather than have it locked up in some mutual fund offer by the firm.

And yes it would be to do the mega backdoor Roth. I've already cleared this with the employment benefits people. First $19k, then contribute post tax dollars up to statutory amount, then roll-over into Roth.

I don't know how many years I'll be in biglaw for so I want to take advantage of this as much as possible. Also with Dems potentially taking power again, I don't want to risk this option going away.

wons

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Re: NYC biglaw firm with fewest trading restrictions?

Postby wons » Thu Jun 13, 2019 7:25 am

All firms have similar policies, and you will quickly learn why: you learn so much MNPI, so often, that it is effectively impossible to trade without skirting the rules and neither you, the firm, nor your clients wants to deal with that risk.

I’ve known one or two people who actively traded on the side knowing that if they get found out they’d be fired, but they were leaving early and basically didn’t care about keeping their jobs. I thought they were nuts and honestly they thought they were nuts too. Everyone else sucks it up and limits themselves to passive investing.
Last edited by QContinuum on Fri Jun 14, 2019 11:35 am, edited 1 time in total.
Reason: Outed for anon abuse.

icansortofmath

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Re: NYC biglaw firm with fewest trading restrictions?

Postby icansortofmath » Thu Jun 13, 2019 8:34 am

Those aren’t even that strict. Closer to the sales and trading side, some people can’t even buy/sell index funds without prior approval (in most cases, this means you have to stick with a fixed investment plan.)

Don’t fuck around with this. This stuff is awfully serious and in a lot of cases, being fired is going to be the least of your concerns.

RaceJudicata

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Re: NYC biglaw firm with fewest trading restrictions?

Postby RaceJudicata » Thu Jun 13, 2019 9:18 am

Past (trading) results do not guarantee future (trading) outcomes. Stick with index funds.

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yodamiked

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Re: NYC biglaw firm with fewest trading restrictions?

Postby yodamiked » Thu Jun 13, 2019 9:29 am

Honestly, this seems like a good way for OP to end up in prison. Insider trading becomes a very real risk once you start at your firm.

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UnfrozenCaveman

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Re: NYC biglaw firm with fewest trading restrictions?

Postby UnfrozenCaveman » Thu Jun 13, 2019 9:39 am

Gotta hit up firms that do minimal public company representation. Cop that Alpha.

Side note: not sure why you’d be so concerned about the Dems ending a Roth backdoor .



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