Can be designed as a 1/2 or full day program which will provide an understanding of the provisions of Regulation T with respect to cash and margin accounts and maintenance margin requirements of FINRA.
- Regulation T
- The history and general provisions of Regulation T.
- Cash account - the provisions of a cash account
are fully explained, including:
- Sufficient funds in account.
- Good faith agreement to pay within one payment period.
- DVP/COD accounts.
- 90 day restriction ("freeze").
- Sales and paragraph (m) of Rule 15c3-3.
- Extensions of time.
- "Free riding" prohibited.
- Margin account
- Purpose of a margin account.
- Reg T definitions.
- Equity and deficit.
- Required margin.
- Margin deficiency and excess.
- Margin call.
- Selling short.
- Special memorandum account.
- Permitted entries.
- How a SMA works in conjunction with a margin account.
- The history and general provisions of Regulation T.
- Maintenance margin
- NYSE Rule 431 (NASD Rule 2520) explained.
- Maintenance margin requirements for equity securities.
- How maintenance margin works in conjunction with Regulation T ("initial" or "fed" requirements).
- Maintenance margin for listed puts and calls.
- Day trader margin requirements.
- NYSE Rule 431 (NASD Rule 2520) explained.
- Case problem - an interactive case problem where the instructor and students compute Regulation T margin, SMA, margin calls, maintenance margin, and "house" requirements for a series of transactions in one account over a period of several days. This will illustrate how "Federal", maintenance, and "house" margin requirements work together.
All training programs and seminars can be customized to meet the specific goals of your organization.
- Understanding the Securities Industry and Securities Settlement and Clearance
- Introduction to the Uniform Net Capital Rule (Rule 15c3-1)
- Introduction to Possession or Control and the Customer Reserve Formula (Rule 15c3-3)
To learn more about these or other training programs
(c) Stephen H. Glad 2007