Available Dates:
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| Course Code: 705 |
| Duration: 1 day |
| Level: Basic |
| Fee: $795.00 |
| Instructor:
Mike Curley |
| CPE Credits: 7 |
| Prerequisite: No Prerequisite Required. |
This one-day seminar presents in a concentrated format the essential information about margin: functions, responsibilities and daily duties of margin department staff, and the impact of margin activities on other departments.
This course is intended primarily for members of the Margin Department and those who interact with this department, including Compliance EDP, internal audit, and other operations personnel.
Conducted in a workshop format, to encourage interaction, the program emphasizes what typically goes on in the Margin department, why and how. Exercises are included to provide opportunities to try out realistic situations.
Topics for discussion include:
The Federal Reserve System
- Purpose
- Functions
- Powers
- Structure
The Cash Account
- Bona fide cash transactions
- Prompt payment
- Settlement date
- Extension of time
- Liquidations
- 90-day freeze
- C.O.D. Transactions
- Sales of securities/delivery of securities
The Margin Account
- Federal initial margin requirement
- Purchase and sales
- Regulation T excess
- Withdrawals
- Buying power
- Computation of Reg T margin calls
- Various deposits to meet margin calls
NYSE Initial and Maintenance
Requirements
- $2,000 initial equity
- 25% minimum maintenance equity
- Issuance and collection of calls
- Meeting maintenance calls
- Post to an SMA
- Understand how a short sale is processed
- Understand the mechanics of a stock loan
- How a short sale is posted
Special Memorandum Account
- Purpose
- Background
- Computation of buying power
- Trading using SMA
- Withdrawals
- Deposits of securities
-
Liquidating transactions
Short Sales
- Definition
- Purpose
- Stock loans
- Executing short sales
- Margin Requirement Reg T
- Computation of equity
- Mark to market
- Maintenance requirements
- Special requirements on low-priced securities
- Mixed accounts long and short
After completing this seminar, participants will be able to:
- Post a margin account
- Compute buying power
- Understand the workings of a cash account
- See what role the Federal Reserve plays regarding credit on securities
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