Q&A7 Flashcards
Sell-out
If buying BD fails to pay for / accept securities that have been delivered by SD, selling BD may initiate sell-out when? Notice req’d?
immediately without advance notice - and may charge buying BD with any loss incurred; must notify buying BD same-day
Portfolio margin
Following permitted to engage:
1. ___ registered with SEC.
- Member of a ___ to extent that listed index options, unlisted derivs, ETF options, index warrants, or underlying instruments hedge member’s ___.
- Any person approved to engage in ___. If customer wants to trade unlisted derivs, customer must maintain equity of at least $__.
- Broker or dealer
- national futures exchange….index futures
- uncovered option contracts….$5mm
Step-out
Used by BDs that have previously executed a trade to ___ all/part of the trade to another BD for ___ purposes.
Executing BD may step out by submitting a ___ report to TRF.
allocate….clearing
clearing-only report
Buy-in
May not be initiated by buyer until ___.
If seller receives buy-in notice and notifies buyer that securities are in transit, buyer must wait ___ before executing buy-in.
SD+3 (TD+6)
7 calendar days
Reserve requirement
BD whose ratio of AI:NC does not exceed 800% (8x) and that carries < $1mm of customer funds may compute the reserve requirement of Rule 15c3-3 how often?
monthly
Haircut
___% on readily marketable securities.
___% on limited market securities (less than three MMs providing quotes).
15%
40%
Non-branch office
Also referred to as ____.
Effects less than ___ securities trades per year.
non-securities business office
25
Form FD
Must be filed when for:
1. Intentional disclosure of mnpi?
- Unintentional disclosure of mnpi?
- simultaneously
2. w/in 24 hours
Chat rooms / online forums
- Considered retail ___.
- Subject to principal pre-approval or FINRA filing?
- What about any scripts, slides, handouts, other written / electronic materials used in connection with appearance?
- communications
- No (considered spontaneous public appearance)
- Yes
Take private
What is required filing for public co going private?
Schedule 13E-3
Wire transfers
BDs must collect info about transfers >= $___.
Must collect / verify identity of ___ and ___.
$3k
transmitter and recipient
Securities counts
BD must make a physical examination and count of all securities in its possession at least [how often], but not less than __ months nor more than __ months following previous count.
Ex: If conducted on Jan 15, next count cannot be made before __ or after __.
May be conducted by employees who are directly responsible for handling securities IF count supervised by someone whose regular duties ___.
quarterly, but not less than 2 months or more than 4 months following previous count
not before March 15 or after May 15
do NOT involve such responsibilities
Hearing Panel
Under Code of Procedure, the hearing panel must notify the subject of a complaint at least ___ days prior to the hearing.
28 days
EGCs
An emerging growth company (EGC) is one with annual revenue of less than $__ in most recent fiscal year.
If EGC undergoes IPO, do quiet periods on research analysts apply?
Can analyst attend an IPO pitch?
$1 billion
No, analysts can begin publishing on day of the IPO.
Yes, but can’t solicit IB biz and IBD personnel must also attend
Mutual fund discounts
Apart from breakpoints, mutual fund companies may only offer a discount or reduced sales charge to ___.
Employees of the mutual fund co
