Series 99 case studies
Series 99 · Put your knowledge to work in context.
The Series 99, formally the Operations Professional Exam, is a FINRA qualification exam that assesses whether an entry-level registered representative has the knowledge needed to perform the critical functions of an operations professional. Candidates must be associated with and sponsored by a FINRA member firm or another applicable self-regulatory organization member firm, and the Securities Industry Essentials (SIE) exam is a corequisite - both must be passed to obtain the Operations Professional registration. The Series 99 case studies are 5 cases and about 1,718 words.
1Short Sale Fail in a Threshold Security
A customer of an introducing broker has been short 42,000 shares of NVTX, a threshold security, since a sale executed Monday, April 7. The clearing firm reports the position has failed to deliver at the NSCC since the April 9 settlement date, and the fail has now persisted through twelve consecutive settlement days.
371 words, about 2 min2Net Capital Deficiency Discovered on a Friday
Ridgeline Securities carries customer accounts and must maintain 250,000 minimum net capital. On Friday, May 16, the controller's draft computation shows net capital of 268,000, but that figure excludes a 95,000 charge for a customer debit created when a deposited check was returned unpaid.
313 words, about 2 min3Structured Wires and a High-Risk Freight Forwarder
A newly opened corporate account for Sunrise Auto Spa LLC lists a car wash as its business. In six weeks it receives 14 incoming wires totaling 412,000 from five unrelated individuals, each wire between 9,200 and 9,800, and sends 390,000 by wire to a freight forwarder in a jurisdiction on the firm's high-risk list.
347 words, about 2 min4Large Trade Error and a Customer Request for the Extra Shares
An institutional order to buy 5,000 shares of HLT at market is keyed as 50,000 shares and fills at an average price of 42.10. Twelve minutes later the error is caught; HLT is trading at 43.60.
336 words, about 2 min5Referral Fees to a Private Real Estate Fund
A registered representative in the operations department is approached by a real estate developer who wants to pay him $2,500 for each client he refers to a private real estate fund. The rep would not sell securities; he would introduce the developer to clients, some of whom are firm customers.
351 words, about 2 min