SIAA Margin Lending case studies
SIAA Margin Lending · Put your knowledge to work in context.
The SIAA Margin Lending credential is aimed at professionals who extend credit against securities: registered representatives, compliance and operations staff, and supervisors at broker-dealers who open, monitor, and liquidate margin accounts. It tests whether a candidate can apply the margin rulebook in practice, not just recite it. The SIAA Margin Lending case studies are 5 cases and about 1,906 words.
1The Inherited Concentrated Position
A customer holds 4,000 shares of XYZ Corp in a margin account, currently trading at 50 (market value 200,000), with a debit balance of 60,000. The customer wants to transfer in 12,000 more XYZ shares from an outside account, which would make XYZ 80% of total account value.
396 words, about 2 min2The Same-Day SMA Withdrawal
On Monday morning a customer's margin account shows: long market value 120,000, debit balance 40,000, equity 80,000, and an SMA balance of 10,000 carried over from prior weeks. On Monday the customer sells 30,000 of securities, settling Wednesday, and simultaneously buys 30,000 of different securities, also settling Wednesday.
378 words, about 2 min3The Short Account Dividend Debit
A customer shorts 1,000 shares of DEF at 80, proceeds 80,000. The account has a credit balance of 80,000 plus the required 50% margin deposit of 40,000, for total credits of 120,000.
388 words, about 2 min4The Options Spread in a Margin Account
A customer holds a long 100-share position in JKL at 60 ( 6,000) in a margin account with a 2,000 debit. The customer wants to write 1 uncovered JKL call (100 shares, strike 65) for 3 premium, and separately buy 1 JKL put (strike 55) for $2 premium.
367 words, about 2 min5The Liquidation Notice Dispute
A customer's margin account has long market value 50,000, debit 35,000, equity 15,000. FINRA maintenance requires 25%, or 12,500, so equity exceeds the requirement by 2,500.
377 words, about 2 min