Security Futures Training - Module 4: Regulatory Requirements for Security Futures

Registration Requirements

 

Registration of markets
Registration of intermediaries with the SEC and CFTC
Registration of certain collective investment vehicles or providers of investment advice

 

Sales Practices

 

Communications with the public
Customer protection rules

  • SIPC
  • Segregated funds

Risk disclosure statement

 

Margin Requirements

 

Initial margin
Maintenance margin

  • Definition of current market value

Risk-based margins

  • Strategy offsets
  • Portfolio-based margining systems (not allowed)

Cross-margining
Applicability of Regulation T
Collateral

  • Type, form and use of collateral
  • Acceptable collateral deposits
  • Use of money market mutual funds

Computation of equity
Meeting margin calls
Account liquidation
Extension of credit

 

Other considerations

 

Suitability
Commissions
Account approval and documentation

Discretionary accounts
Best execution requirement
Reporting customer complaints
Anti-fraud and anti-manipulation requirements

  • Section 4(b) of the CEA and 10(b) of the Securities Exchange Act
  • Prohibition against trading on inside information
  • Prohibition against trading ahead of research reports
  • Prohibition against trading ahead of customer orders