1 Flashcards
FINRA rules require that OATS reports be transmitted when?
Daily
a fifth character by a market makers’ indentifier on a particular security indicates what?
that the market maker quotes in more than one trading location
one of the representatives in your office has been fined $3,000 for continuing to violate firm procedures. Under FINRA rules, your firm is obligated to what?
notify FINRA within 10 business days
According to SEC rule 17a-5, a trial balance must be prepared by B/D at least how often?
Monthly
SEC Rule 15c3-3 k1 exemption of performing the weekly reserve computation applies to what?
applies to firms dealing exclusively in the sale of investment company securities
SEC Rule 15c3-3 k2(i) exemption of performing the weekly reserve computation applies to what?
applies to firms that clear their business on a full disclosed basis. These firms have no margin accounts and all financial transactions with customers must be done through a special bank account
SEC Rule 15c3-3 k2(ii) exemption of performing the weekly reserve computation applies to what?
introducing firms
if a market maker’s bid or offer is decremented to zero, and the firm is not using automatic quote refresh, the firm must update its quote and size within how many seconds?
30
if a full=service b/d has been found to have violated numerous MSRB rules, a fine will be assessed by whom and paid by whom?
FINRA and paid to FINRA
what eight securities are eligible for inclusion on Nasdaq?
rights, warrants, connvertible debt, preferred stock, ADRs, ADSs, common stock and other equity securities
Defined benefit plans
contributions may vary. Distributions are fixed
in an active competitive market the prevailing market price for determining markup and markdown is what?
markup - lowest offer
markdown - highest bid
if a member firm terminates its independent accounting firm, the SEC and the SRI must be notified when?
within 15 bus days of termination date
under the sarbanes=oxley act of 2002, the officers signing the financial statements of a reporting company must certify that they have evaluated their internal controls with the previous how many days?
90 days
describe a fidelity bond?
insurance bond that protects b/ds from losses due to theft or embezzlement by employees
to terminate further 12b-1 fees, a find must have a majority vote of who?
shareholders and outside directors
a pattern of currency deposits designed to avoid currency reporting requirements is termed what?
structuring
under SEC rules, subsidiary ledgers must be retained for how long?
3 years
ACES is a service that allows order entry forms to access what?
a market maker’s internal trading system for order placement and execution
If a securities B/D registerd with FINRA wishes to merge with another member, FINRA must be notified when?
at least 30 days prior to the closing date
Under Regulation A, when must a B/D furnish an offering circular to purchasers?
48 hours before the confirmation
under Nasdaq trading rules, market-on-close orders can NOT be entered after what time?
3:50 pm
Under Hart-Scott-Rodino, the waiting period, after filing premerger notification information with the FTC, is?
30 days
If a market maker’s bid or offer is decremented to zero, and the firm is not using Automatic Quote Refresh, the firm must update its quote and size within how many seconds?
30
under the USA patriot Act, firms must make records relating to wire transfers of how much?
$3,000 or more
rule 144 applies to the sale of securities by all of the following except?
issuers, nonissuers, control persons or affiliated persons
issuers
Under FINRA rules, the account name or number must be on an order ticket before what?
order execution
the record keeping and reporting requirement of the Bank Secrecy Act are an attempt to do what two things?
deter money laundering and overcome foreign bank secrecy laws
the trading system that allows market makers to electronically negotiate trades with other market makers is?
Nasdaq
a qualified distribution from a Roth IRA is one made after what?
age 59 and a half and an 5 year holding period
the winning bid in a competitive offering is the one that provides the issuer with the?
lowest net or true interest cost
regarding reporting, TRACE requires what?
dual side reporting (both the buyer and seller)
trades effected by qualified institutional buyers (QIBs) in Rule 144A transactions that are otherwise ineligible for clearing through the NSCC are reported through which system?
ORF no later than 8 pm ET
if a member firm wishes to have a clearly erroneous trade reviewed, it must notify who?
Nasdaq Market Opertions
OATS rule apply to
Securities listed on the Nasdaq stock market
