Product-Specific Disclosures: Options Communications
Chapters in this video
- 0:00 The ODD as the gatekeeper of options communications
- 1:16 Account approval versus first trade: the timing trap
- 2:22 Hyperlinks and electronic delivery of the ODD
- 3:00 10 calendar days: the pre-ODD filing requirement
- 4:46 Permitted and prohibited content before ODD delivery
- 5:46 Post-ODD rules: back to the fair-and-balanced world
- 6:17 OCC supplements and the trade confirmation deadline
- 7:01 Rapid-fire exam recap
What this video covers
- The exact trigger for ODD delivery (at or before account approval, not the first trade) and why the exam swaps this timing to create traps
- Why a hyperlink to the ODD counts as valid electronic delivery under FINRA rules
- The 10-calendar-day pre-use filing requirement for retail communications before ODD delivery, and why calendar days beat business days here
- The three permitted content categories for pre-ODD communications (general descriptions, exchange or clearing agency descriptions, ODD contact information)
- The three prohibited content categories for pre-ODD communications (recommendations, performance figures, specific security names)
- How post-ODD communications revert to standard fair-and-balanced rules, allowing specific securities and regulated performance data
- The supplemental ODD distribution rule: when and how firms must deliver OCC updates to customers who already hold the base document
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