Professional Idemnity Insurance for live trading system?

**swamp** · 23 August 2007, 21:23

What is so special about a live trading system?

There are plenty of systems out there that, if broken, could cause the client untold losses.

**vhadiant** · 24 August 2007, 08:16

Colleague (also a contractor) here told me that when you're working on live trading system you need a special cover.

True/false?

**ElectricChair** · 24 August 2007, 09:08

Originally posted by vhadiant View Post

Colleague (also a contractor) here told me that when you're working on live trading system you need a special cover.

True/false?

Is this for an IB?

**thunderlizard** · 24 August 2007, 09:40

You need a policy that doesn't exclude live trading systems, that's all. I've worked on live trading systems on my normal (Caunce O'Hara) policy: upped the insured amount but didn't need to change the terms.

**vhadiant** · 24 August 2007, 09:52

Originally posted by ElectricChair View Post

Is this for an IB?

Yes

**ElectricChair** · 24 August 2007, 09:57

Originally posted by vhadiant View Post

Yes

Then the testing will pick up any issues.

**Chugnut** · 24 August 2007, 15:37

Originally posted by vhadiant View Post

It's been asked before, but I can only find 1 thread regarding insurance for IT contractors working on live trading system. Do we need to worry about this?

That thread mentioned Dallas Kirkland Ltd. Does anyone know if Hiscox or Caunce cover for work on live trading system? I can't seem to find any reference about it.

I asked Randel Dorling to confirm that their PCG's insurance covered me whilst working for an IB (not live trading though) after the usual doom-mungering posts on here claimed they didn't. Quote from the email back: -

"Please be reassured that the Policy that you have covers you for your activity within the financial sector providing that you are not required to be an "Approved Person" under the terms of the Financial Services Act".

I was told that I would know if I were an "Approved Person"!

Get them to put your mind at rest. I found a similar reference under the full policy wording on their website.

Professional Idemnity Insurance for live trading system?