Displaying 1 - 10 of 58 Results
Notice
May 6, 2022
… has issued the March 2022 Options Disclosure Document ODD The ODD contains general disclosures on the characteristics and risks of trading standardized options The March 2022 ODD i contains supplemental material to accommodate …
Regulatory Notice
April 19, 2022
… to as alt funds or liquid alts Alt Funds FINRA is continuing to note such deficiencies in its examinations and communications reviews of such products This Notice reminds member firms of their sales practice and … sales practice obligations for these and other products especially when such products may carry additional risks for customers For example FINRA has addressed member firms supervisory and compliance obligations for … an appropriate risk tolerance tailor their trading surveillance and systems to address the unique risks and characteristics of Alt Funds and identify Alt Funds transactions for additional reviews Insufficient Review of …
Rule
… estate mortgage investment conduits REMICs as defined in the Tax Reform Act of 1986 b Disclosure Standards and Required Educational Material 1 Disclosure Standards All retail communications and correspondence … a4 a member must offer to the person educational material that includes the following A a discussion of i characteristics and risks of CMOs including credit quality prepayment rates and average lives interest rates including their …
Request for Comment
March 8, 2022
… rulesguidancenotices2208 … /rules-guidance/notices/22-08 … The availability of complex products and options can potentially expand the investment opportunities for retail investors and if properly … regulatory concerns arise when investors trade complex products without understanding their unique characteristics and risks Like complex products trading in options may pose risks if investors do not have the financial …
Regulatory Notice
August 14, 2020
… 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 … Futures Risk Disclosure Statement Statement 3 This Statement composed of nine sections discusses the characteristics and risks of standardized security futures contracts traded on regulated US exchanges Since its adoption the …
Investor Insights
December 14, 2020
… than assignment the fulfilling of the requirements of an options contract Options trading carries risk and requires specific approval from an investors brokerage firm For information about the inherent risks and characteristics of the options market refer to the Characteristics and Risks of Standardized Options also …
Regulatory Notice
April 9, 2021
… … Summary With the recent increase in the number of customers seeking to open brokerage accounts and trade options FINRA reminds members of the requirements for determining whether to approve a customer to … to trade options the rule requires that members must furnish the customer with the document entitled Characteristics and Risks of Standardized Options also known as the options disclosure document available on the Options Clearing …
Content Outline
… the Securities Industry CE Program FINRA has adopted important changes to its continuing education CE and registration rules to train registered persons more effectively while accommodating registered persons … holdings A4 Product KnowledgeInvestment Vehicles and Implications Related to Risk This section focuses on characteristics risks and disclosure requirements of productsinvestment vehicles and strategies Examples of Products equities …
Regulatory Notice
March 18, 2021
… market conditions with respect to handling customer orders maintaining appropriate margin requirements and effectively managing their liquidity Questions concerning the best execution guidance discussed in this … to receive or accept orders from customers where the firms believe that the associated compliance or legal risks are unacceptable 9 and there may be situations where firms determine they must change their order … May 2016 FINRA notes that it has also issued investor alerts to help educate customers directly about the characteristics and risks of different order types including stop orders See eg FINRA Investor Alert …
Rule
… i similar patterns of trading activity among separate entities ii the sharing of kindred business purposes and interests iii whether there is common supervision of the entities which extends beyond assuring adherence … general explanatory information relating to the mechanics of buying writing and exercising options the risks involved the uses of and market for the options transaction costs and applicable margin requirements tax … shall specify unless otherwise instructed by the customer 11 Delivery of Current Disclosure Documents Ai Characteristics and Risks of Standardized Options the ODD Every member shall deliver the current ODD to each …