Funding and Cash Management

The final Series 27 chapter covers how the firm funds its operations and manages ongoing cash and credit pressure. That includes margin activity, excesses and deficits, stock borrowing, repurchase activity, processing-account reconciliations, and approved regulatory funding arrangements such as subordinations and secured demand notes. These topics close the exam because they connect operational processing to the firm’s actual liquidity discipline.

Read this chapter as the firm’s live-balance layer. The FINOP is no longer only classifying or reporting what happened. The FINOP is actively monitoring margin exposure, funding structure, and cash pressure so the firm stays in control before those issues become capital or customer-protection failures.

Series 27 section lessons

Use these section lessons as the main reading path for this Series 27 function. They keep FINOP calculations, filings, custody controls, and escalation decisions tied to the exact exam workflow.

In this section

• Margin, Excesses, Deficits, and Short-Sale Funding Pressure
  Review how Series 27 tests margin calls, deficits, stock borrowing, short-sale close-outs, and related funding workflow.
• Regulatory Funding, Subordinations, and Secured Demand Notes
  Learn how Series 27 tests approved funding arrangements and the limits of using debt to support broker-dealer operations.