Security Futures Training

The content outline has been established by FINRA and NFA for use by firms in developing their Firm Element training programs. The outline contains five modules or segments: (1) Stock and Stock Options; (2) Futures Contracts; (3) Security Futures Products; (4) Regulatory Requirements for Security Futures; and (5) Supervision of the Offer and Sale of Security Futures. You may also access an online Security Futures Training Program through this Web page.

 

Module 1: Stocks and Stock Options is intended primarily for futures professionals as an introduction to securities and securities law concepts. FINRA will not require broker/dealers to administer the content of Module 1 to securities registrants. Firms should decide on their own whether their employees would benefit from the basic securities overview.

 

Module 2: Futures Contracts is intended primarily for securities professionals as an introduction to the basic concepts and terminology of futures. In general, FINRA will require that members administer the content of Module 2 to securities registrants, although firms employing dually-licensed persons (i.e., persons registered with a broker/dealer and an futures commission merchant or introducing broker), may not need to administer Module 2 to such persons.

 

Module 3: Security Futures explains the characteristics and elements of security futures.

 

Module 4: Regulatory Requirements for Security Futures describes the regulatory framework, including sales practice and margin requirements, for these new products. All FINRA member firms must administer the content of Modules 3 and 4 to their personnel before such persons may engage in a security futures business.

 

Lastly, Module 5: Supervision of the Offer and Sale of Security Futures, addresses issues relevant for persons who will be supervising personnel engaged in a security futures business. Firms must administer Module 5 to their appropriately qualified individuals before such persons can supervise security futures activity.