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Series 3 Regulations c questions and answers verified 2024
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Series 3 Regulations c questions and answers verified 2024
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Series 3 RegulationsNFA - correct answer ✔1976 -Self regulatory regulates all persons
conducting futures business with the public.
CFTC - correct answer ✔Commodity Futures Trading Commission Act of
1974
independent agency of U.S government. 5 members 5 year term.
CFTC REAUTHORIZATION ACT - correct answer ✔2008 enforce the Dodd-
frank act - must register with the CFTC as "RFEDS"- retail foreign exchange
dealers if you did retail forex transactions business. Registered FCMS are
permitted to engage in forex without registering as RFEDS. AP must pass
both Series 3 & 34.
Who regulates stock index futures & stock index futures options? - correct
answer ✔CFTC AND NOT THE SEC THEY ARE FUTURES
Front running - correct answer ✔Putting orders ahead of customers
Customer protection procedure - correct answer ✔FCM must separate
customer assets from the firms & firm cannot use customer funds for business
or own trades
Future exchanges - correct answer ✔Must b licensed with CFTC. CFTC
designates particular exchanges as contract markets for specific commodities
NFA Form 8-R - correct answer ✔10yr Employment history 5yr residential 4
AP
,Reporting limits - correct answer ✔Max net number of contracts one trader
or customer can hold on same side of a comd without having to file daily
report(all long & short positions options also)
Special accounts - correct answer ✔Weekly reports of accounts exceeding
reporting levels
Position limits - correct answer ✔Bona fide hedgers don't have position limits
only to speculators
How many days does a bona hedger have to notify CFTC of intent exceed
position limit? - correct answer ✔At least 30days b4 establishing
commissions became negotiable? - correct answer ✔March 1978
Cftc reparations program - correct answer ✔Thru a 'Alj' preceding of 30k>
wide vary if sanctions suspending! revoking !civil penalties & deny trading
privileged all exchanges.
Inexpensive way to resolve disputes between future & options customers &
registered trading professionals 2yr statue of limitation
Voluntary summery or formal
Decisions by ALJ appealed by? - correct answer ✔Commission and then US
court of Appeals
Criminal proceeding penalty? - correct answer ✔Us district court felony
punishable by fines or 5yrs prison or both . misdemeanor punishable up to 1yr
prison.
, Statue of limitation - correct answer ✔Complaints must be filled within 2yrs of
date violation occurred or 2yrs the offended party should have known about
violation.
NFA membership? - correct answer ✔FCMS,IBs,CPO,CTA,AP OF ALL
ALJ - correct answer ✔Administrative law judge
Ap dual registration - correct answer ✔Yes long as NFA is notified each
member must certify they know of each other and supervise the AP
Appealed denial of registration to NFA ? - correct answer ✔Must b filed
within 30 days to the CFTC
Bucket orders - correct answer ✔Hold but not execute
Churning - correct answer ✔Excessive transactions
Members & Ap share customers profits& loss? - correct answer ✔Yes with
Written consent from the customer
Say the approved ,endorsed by NFA - correct answer ✔No
Terminate membership while under investigation ? - correct answer ✔No
Do business with suspended members? - correct answer ✔No
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