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Friday, April 23, 2021

Options Regulatory Alert #2021 - 24
FINRA Regulatory Notice 21-15


  • Regulatory

Markets Impacted:

Contact Information:


This notice serves as a reminder to members, member organizations and Participants that whether an account is self-directed, or options are being recommended, members, member organizations and Participants must perform due diligence on the customer and collect information about the customer to support a determination that options trading is appropriate for that customer. In addition, options accounts must be subject to specific supervisory reviews, including, among others, reviewing the compatibility of options transactions with investment objectives and with the types of transactions for which the account was approved. It is important that members, member organizations and Participants review their policies and procedures on these topics to ensure they are fully complying with the requirements.

The rules related to opening and supervising options accounts, options recommendations, and margin requirements include, among others:

  • Options 6C, Margins

  • Options 10, Section 6 Opening of Accounts

  • Options 10, Section 7 Supervision of Accounts

  • Options 10, Section 8 Suitability of Recommendations

  • Options 10, Section 9 Discretionary Accounts

  • Options 10, Section 13, Delivery of Current Options Disclosure Documents and Prospectus

    Please also review FINRA Regulatory Notice 21-15, available through the link under Resources.

    Questions regarding the attached Regulatory Alert can be directed to the contacts below.

    • Joseph Cusick, Vice President, Nasdaq Options Surveillance, at joseph.cusick@nasdaq.com
    • David Strandberg, Head of Enforcement, Nasdaq Regulation, at david.strandberg@nasdaq.com

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