The Commodity Futures Modernization Act of 2000 (CFMA) lifted the ban on trading security futures, specifically single-stock and narrow-based stock index futures. Security futures are regulated both as securities and as future contracts, and must be traded on trading facilities and through intermediaries registered with both the SEC and CFTC.
Security futures involve a high degree of risk and are not suitable for all investors. The possibility exists that your customers holding security futures could lose a substantial amount of money in a very short period of time because security futures are highly leveraged. The amount they could lose is potentially unlimited and can exceed the amount they originally deposited with your firm.
There are no trading strategies that can eliminate the risk in security futures. Strategies using combinations of positions, such as spreads, may be as risky as outright long or short futures positions. Trading in security futures requires knowledge of both the securities and futures markets.
Continuing Education (CE) Requirements
The CFMA requires FINRA and the National Futures Association (NFA) to develop proficiency requirements related to security futures products. FINRA requires any registered securities or futures professionals who intend to engage in a securities futures business to complete a Firm Element continuing education program covering security futures.
FINRA and the NFA, in partnership with the Institute for Financial Markets, have developed a Web-based, Firm Element continuing education program focusing on essential information that should be known by persons who offer and sell security futures and those who supervise such persons. Learn more about security futures training requirements.
In addition, firms should be aware that adding a securities futures business may constitute a material change of business. This would require a firm to file a continuing membership application and obtain prior approval from FINRA before engaging in a security futures business.
|5 Golden Rules for Avoiding Problems with Physical Precious Metals |
The IRS isn’t the only government agency sending out refund checks this time of year. The Federal Trade Commission sent checks totaling more than $2.4 million to over 100 investors who had fallen victim to the Premier Precious Metals scheme. These five “golden rules” can help you avoid problems when it comes to investing in physical precious metals.
|Access to Security Futures Training||Tool / Resource||02-11-2015|
|Regulatory Notice 12-41|
FINRA Amends the TAF Rate for Transactions in Covered Security Futures
|Register Notice 10-51|
Sales Practice Obligations for Commodity Futures-Linked Securities
|Information Notice- 9/7/10|
August 2010 Supplement to the Security Futures Risk Disclosure Statement
|Supplement to the Security Futures Risk Disclosure Statement|
Supplement to the Security Futures Risk Disclosure Statement AUGUST 2010 SUPPLEMENT TO THE SECURITY FUTURES RISK DISCLOSURE STATEMENT The October 2002 Security Futures Risk Disclosure Statement is amended as provided below. The first full paragraph on page 46, which per- tains to dividends, is
|Regulatory Notice 09-33|
SEC Approval and Effective Date for New Consolidated FINRA Rules
|Regulatory Notice 09-06|
FINRA Requests Comment on Proposed Rule to Establish a Leverage Limitation for Retail Forex
|Regulatory Notice 08-78|
FINRA Announces SEC Approval and Effective Date for New Consolidated FINRA Rules Relating to Warrants, Options and Security Futures
|Notice to Members 06-63|
Amendments to Registration Rules Extending the Date by which Eligible Registrants must Complete Continuing Education Program before Engaging in Security Futures Activities
|Notice to Members 03-16|
SEC Approves New Rule and Rule Amendments Concerning Audit Trail and Trading Halt Requirements for ATSs that Trade Security Futures
|Notice to Members 02-73|
SEC Approves New Rules and Rule Amendments Concerning Security Futures
|Security Futures Brochure|
Security Futures Brochure Security Futures Risk Disclosure Statement October 2002 NASD and the National Futures Association (NFA), require members to deliver this Security Futures Risk Disclosure Statement to customers at or prior to the time a customer’s account is approved for trading security
|NASD, NFA Announce Joint Launch of Web-based Proficiency Training for Security Futures Products|
Tuesday, September 3, 2002 Nancy A. Condon 202-728-8379 Michael Shokouhi 202-728-8304 Washington, DC and Chicago, IL — NASD and the National Futures Association (NFA) today announced that they have launched a Web-based training program for registered securities and futures representatives who plan
|Training Requirements: Security Futures Firm-Element Continuing Education |
The Commodity Futures Modernization Act of 2000 ("CFMA") lifted the ban on the trading of security futures, i.e., single stock and narrow-based stock index futures ("security futures"). Because they are subject to regulation both as securities and as futures contracts, security
|Content Outline for Security Futures Firm-Element Continuing Education|
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
|Security Futures—Know Your Risks, or Risk Your Future|
Security futures are among the potentially riskiest financial products available in the United States. This article describes what security futures are, how they differ from stock options, some of the risks they can pose, and how they are regulated.