OPTIONS ACCOUNTS

3252. Additional requirements when opening an options account

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    1. Before entering an initial options trade in an account, a Dealer Member must:

      1. obtain a completed options account application from the client, 

      2. obtain a signed options trading agreement from the client,

      3. provide the client with the most recent options disclosure statement or similar disclosure document, and 

      4. record the designated Supervisor’s approval of each client account in writing. 

    2. The designated Supervisor must determine whether the risk characteristics of the strategies the client intends to use are appropriate for the client and in keeping with his or her investment objectives and risk tolerance. If they are not, the designated Supervisor should restrict the account from using inappropriate strategies and note on the option account approval any trading restrictions imposed and communicate those restrictions to the Registered Representative, Portfolio Manager or Associate Portfolio Manager assigned to the account.

    There is no history log for this rule.

    There is no history log for this rule.