INFORMATIONAL
Option Contracts
SUGGESTED ROUTING
KEY TOPICS
Executive Representative
Legal & Compliance
Registered Representatives
Senior Management
Options
Options Self-Regulatory Council
Executive Summary
NASD Regulation is providing this Notice on behalf of the Options Self-Regulatory Council. This Notice advises broker/dealers to review or develop
The Extended Hours Trading topic of the 2025 FINRA Annual Regulatory Oversight Report (the Report) informs member firms’ compliance programs by providing annual insights from FINRA’s ongoing regulatory operations, including (1) regulatory obligations, (2) findings and effective practices, and (3) additional resources.
INFORMATIONAL
Certificates Of Deposit
SUGGESTED ROUTING
KEY TOPICS
Executive Representative
Legal & Compliance
Trading
Operations
Senior Management
Long-Term or Brokered Certificates of Deposit
Executive Summary
Members increasingly have been offering to customers a number of non-traditional certificate of deposit (CD) products. Typically, these products are
INFORMATIONAL
Certificates of Deposit
Effective Date: October 8, 2002
SUGGESTED ROUTING
KEY TOPICS
Executive Representatives
Legal & Compliance
Trading
Operations
Senior Management
Certificates of Deposit
Executive Summary
NASD is issuing this Notice to supersede NASD Notice to Members 02-28 (Notice or Notice 02-28) and replace the guidance offered in Notice to
(a) Definition
For purposes of this Rule, the term "collateralized mortgage obligation" (CMO) refers to a multi-class debt instrument backed by a pool of mortgage pass-through securities or mortgage loans, including real estate mortgage investment conduits (REMICs) as defined in the Tax Reform Act of 1986.
(b) Disclosure Standards and Required Educational Material
(1)
Alternative, "alt" or “liquid alt” funds are publicly offered, SEC-registered funds that use investments or strategies that can differ from what is offered in a typical fund. Compared to more traditional mutual funds and exchange-traded funds (ETFs), liquid alt funds tend to hold investments that extend beyond equities and bonds or employ more complex or sophisticated strategies.
The availability of complex products and options can potentially expand the investment opportunities for retail investors and, if properly understood, offer favorable investment outcomes (e.g., enhancing returns, limiting losses or improving diversification). However, important regulatory concerns arise when investors trade complex products without understanding their unique characteristics and
Trading an option contract with zero days to expiration is a that strategy has become more common as expirations in certain options have expanded to practically every day of the week. But selling and buying options with zero days to expiration can be risky.
Summary
FINRA has released an updated Security Futures Risk Disclosure Statement (2020 Statement) to replace the one that was last updated in 2018, and a supplement (2020 Supplement) that reflects the disclosure updates described herein.1 The 2020 Statement incorporates all cumulative changes made to date, which include, among others, conforming changes for updates to the market-wide circuit
Options trading carries risk and requires specific approval from an investor’s brokerage firm.
