Extensions of Time Under Reg T and the Customer Protection Rule

What this video covers

• The two distinct triggers for a margin-extension request: Federal Reserve Regulation T (Reg T) payment failure versus Securities and Exchange Commission (SEC) customer-protection delivery failure
• The automatic default consequence for each trigger: 90-day cash-account freeze for Reg T non-payment, forced buy-in or sell-out for customer-protection non-delivery
• The Reg T payment-date math under T+1 settlement: settlement plus two business days (S+2), which equals trade plus three (T+3) from the trade date
• Why a FINRA extension buys time but does not erase the underlying violation, and what documentation the firm must still maintain
• The four specific factors FINRA reviews (customer history, market conditions, firm's good-faith effort, anticipated cure date) and why extensions are never automatic
• What constitutes a pattern of inadequate funding (repeat extensions), the mandatory principal-imposed account restrictions, and the distinction between introducing-firm and clearing-firm responsibilities
• The clearing-firm monthly extension-ratio report and its strict 5-business-day filing deadline after the reporting month ends