Operations Professional Qualification Exam
The Series 99 exam qualifies individuals to perform operations functions at FINRA member firms. It covers the knowledge required for settlement and clearing, trade processing, account administration, margin and lending operations, corporate actions, regulatory reporting, and maintaining books and records. The exam also tests professional conduct and ethical standards expected of operations professionals. This exam requires the SIE exam and firm sponsorship.
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Practice Questions
Test your knowledge with these Series 99-style questions. Click an answer to check if you are correct.
1. The standard settlement cycle for equity securities traded on a U.S. exchange is:
Correct: B. The standard settlement cycle for most U.S. securities is T+1 (trade date plus one business day). This was shortened from T+2 to reduce counterparty and systemic risk in the settlement process.
2. Under SEC Rule 17a-4, trade blotters must be retained for a minimum of:
Correct: C. Trade blotters, general ledgers, and customer account records must be retained for 6 years under SEC Rule 17a-4. Correspondence and order tickets are retained for 3 years. The first 2 years of all retained records must be kept in an easily accessible location.
3. SIPC coverage protects customers up to what maximum amount per account?
Correct: B. SIPC protects customers up to $500,000 per account, with a $250,000 sublimit for cash claims. SIPC covers the return of missing assets when a broker-dealer fails but does not protect against market losses.
4. A Currency Transaction Report (CTR) must be filed for cash transactions exceeding:
Correct: C. Under the Bank Secrecy Act, a CTR must be filed for cash transactions exceeding $10,000. Firms must also be alert to structuring -- the practice of breaking up transactions to avoid the $10,000 reporting threshold, which is itself a violation.
5. SEC Rule 15c3-3 requires broker-dealers to:
Correct: B. SEC Rule 15c3-3 (the Customer Protection Rule) requires broker-dealers to maintain possession or control of fully paid and excess margin securities and to maintain a special reserve bank account for the exclusive benefit of customers. The net capital requirement is covered by a separate rule (15c3-1).
Related Exams
These exams are commonly pursued alongside or before the Series 99.
Securities Industry Essentials
The prerequisite for the Series 99. Covers fundamental concepts of securities products, markets, regulatory agencies, and prohibited practices.
General Securities Representative
Operations professionals who want to expand into client-facing roles often pursue the Series 7 for general securities representative qualification.