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Index Options Position Limit Rules

FINRA Rule 2360(b)(3)(B) provides that “…no member shall effect for any account in which such member has an interest, or for the account of any partner, officer, director or employee thereof, or for the account of any customer, an opening transaction in an option contract of any class of index options dealt in on an exchange if the member has reason to believe that as a result of such transaction the member or partner, officer, director or employee thereof, or customer, would, acting alone or in concert with others, directly or indirectly, hold or control or be obligated in respect of an aggregate position in excess of position limits established by the exchange on which the option trades.”

Changes to an exchange rule regarding index option position limits could affect a FINRA-regulated firm’s compliance with FINRA Rule 2360(b)(3)(B). Accordingly, FINRA is providing information about the pending rule filings with the SEC seeking to amend index option position limits as well as any SEC orders approving or disapproving those rule filings.

  • No currently pending filings