Options Account Supervision

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Chapters in this video

  1. 0:00 The options club and Cboe Rule 9.2
  2. 1:01 Why only a Series 4 ROP can approve accounts
  3. 2:04 The three-part new-account vetting checklist
  4. 2:57 The annual report to senior management
  5. 3:46 How options supervision stacks with FINRA and MSRB
  6. 4:31 Rapid-fire exam recap

What this video covers

  • Why only a Series 4 Registered Options Principal (ROP) can approve a new options account, and why a Series 24 general securities principal is not sufficient
  • The three mandatory elements an ROP must review on every options new-account approval: financial status, investment objectives, and options experience
  • What counts inside financial status: income, net worth, and liquid net worth
  • The annual options supervision report to senior management, including supervisory control system, test results, significant exceptions, and amended procedures
  • Why the options annual report is a separate Cboe Rule 9.2 requirement, distinct from the firm's general supervisory control report
  • How Cboe Rule 9.2 stacks with FINRA supervision, supervisory control testing, and MSRB municipal supervision in the broader framework
  • Why a firm trading both munis and options needs both a Series 53 and a Series 4 principal, since one badge does not cover all product lines

Read the full lesson, free

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Read the Free Lesson → free · no signup wall