Tidbits Flashcards
A BD that receives but does not hold customer securities must maintain a min NC of
50,000
Minimum margin on a new account is how much
2,000
The exercise cuff-off for listed stock options about to expire is
Listed options contract for equity securities expire when
5:30 EST on the third Friday of every month
At midnight on the third Friday of each month
Customer fails to deliver are required to be bough in an which day past S or T
After the 10th business day past S
Under the uniform practice code, buy-in of fails to receive may be made how many days after written notice
two business days have elapsed after the date written notice is sent
Are long option contracts marginable
No, they must be paid in full
A contract that has not been completed by the seller according to its terms may be closed by the buyer (bought-in) no sooner than the
3rd business day following the date of delivery was due
Must give notice to seller no later than 12pm, 2 business days prior to the buy-in.
How many business days can elapse before securities that are suspected to be lost must be reported to SIC on the following business day
2 business days
If a customer has free credit balance that reduces customer debits, how to calculate how many shares need to be in possession or control
(Customer debit - free credits) * 140% = allowable rehypothecation
(MV of securities - allowable rehypothecation) / price per share
base haircut to be taken on a money market fund is
2%
Long securities differences that are sold will impact total available capital and net capital in what way
Total available capital: Will increase
Net capital: Is unaffected
Simplified arbitration is available for claims where the amount in dispute does not exceed
50,000
Under 15c3-1 for commodities balances, equity balances in the commodities accounts of partners affect AI and NC in what way
Aggregate Indebtedness: Excluded
Net Capital: Excluded
CTR reports of currency transactions over 10k must be filed with finCEN within and retained for?
15 calendar days
Retained for 5 years
What is the definition of stock power
A limited power of assignment or substitution given to the BD
Blotters are used to record
all trades, no later than the day after trade date
What are the minimum thresholds on a single security for a undue concentration haircut for tentative NC (de minimis)
Equity security: The greater of 10k or MV of 500 shares
Debt security: 25k
Is mortgage payable aggregate indebtedness?
No
How many business days can elapse before securities that are suspected to be stolen must be reported to the SIC
1 business day
Independent verification of the 4 critical pieces of information provided by a customer at account opening must occur
Within a reasonable time after account opening
Haircut types on investment grade convertible bonds are (below par/above par)
Below par: debt haircut
Above par: Equity haircut
Reports of suspicious activities must be filed with FinCEN
Within 30 calendar days of initial detection
Inside information is considered public when the information
Is available for public evaluation
Subsidiary records must be kept for how many years and posted in how many days
Kept for 3 years
Posted no later than 2 business days
