Series 30 case studies
Series 30 · Put your knowledge to work in context.
The Series 30 - formally the NFA Branch Manager Examination - is the proficiency exam that individuals must pass to be registered with the National Futures Association as a branch office manager for a futures commission merchant or introducing broker. It is aimed at people who already hold (or are simultaneously seeking) an associated person registration and who will be responsible for supervising a branch: reviewing sales activity, approving communications with the public, monitoring account handling, and ensuring the office stays within CFTC and NFA requirements. The Series 30 case studies are 5 cases and about 3,829 words.
1The Top Producer Working From Home
Priya manages a six-AP branch of an FCM. Since March her top producer, Dell, has worked from home three days a week, takes customer orders on a personal cell phone, and emails order confirmations from a personal address.
773 words, about 4 min2The $2 Million 'Excess' That Wasn't
A small FCM's customer segregated account holds 52.4 million against a segregation requirement of 50.0 million computed at yesterday's close. The treasurer wants to wire 2.0 million to the firm's house account this afternoon to cover a proprietary margin call at its clearing member, leaving 50.4 million and, he says, ' 400,000 to spare.' Reviewing the computation, the branch manager notices two components of the 52.4 million asset total: a 1.1 million check from a new customer deposited yesterday but not yet collected, and 600,000 described as 'funds in transit' sitting in an affiliate introducing broker's own operating account with no written acknowledgment from the affiliate.
665 words, about 3 min3The Back-Tested Email
A branch AP emails a one-page 'performance summary' to 43 retail prospects. It shows a chart of simulated results for his discretionary program labeled 'back-tested, 2019-2024, annualized 34%, verified by our outside accountant.' The text reads: 'The program has never had a losing quarter, and your principal is protected by the exchange's guarantee.' A client quote reads: 'I've made money every month since I joined.' There is no risk disclosure, no statement that the results are hypothetical, and no statement that past performance does not guarantee future results.
785 words, about 4 min4The Retired Farmer With Three Wires
A customer opened an account four months ago with a 250,000 wire from a company with a generic name in another country. The new-account form lists him as a retired farmer with 300,000 net worth and 'no third-party involvement.' Since then he has placed no trades, deposited three 9,800 cashier's checks on consecutive days, and requested three outgoing wires of roughly 80,000 each to three different individuals in two countries.
822 words, about 4 min5Seventeen Days in the New Branch
An FCM opens a new two-person branch in a leased office above a hardware store. The designated branch office manager passed the Series 30 exam three weeks ago, but NFA has not yet approved the branch office registration.
784 words, about 4 min