Sales Practices and General Options Trading Activities

Function 2 is the operational and conduct-heavy center of Series 9. Once the account is open, the options principal has to supervise complaints, trade errors, daily order and execution activity, position and exercise limits, prohibited practices, and the post-trade mechanics of assignments, exercises, corporate actions, and settlement. This is where options supervision becomes very concrete.

Read this chapter as the activity-review function. Start with complaints and trade errors, then move into daily trading exceptions and prohibited practices, and finish with exercises, assignments, and the operational process of options trades.

In this section

• Complaints, Trade Errors, and Recordkeeping
  Learn how Series 9 tests options complaints, record-retention duties, regulatory reporting, cancel and rebill review, and options error handling.
• Daily Trade Review, Position Limits, and Prohibited Practices
  Learn how Series 9 tests position and exercise limits, large position reporting, order review, best execution, manipulation concerns, and prohibited options practices.
• Exercise, Assignment, Corporate Actions, and Settlement
  Learn how Series 9 tests exercises, assignments, OCC processes, corporate-action adjustments, allocation methods, and options settlement.