Operations Professional Exam (Series 99) Flashcards
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How many scored questions are on the Series 99 exam?
50 scored questions.
How long do you have to complete the Series 99 exam?
90 minutes (1 hour and 30 minutes).
What score do you need to pass the Series 99?
68%.
How much does the Series 99 exam cost?
$100.
Roughly how many minutes per question do you have on the Series 99?
About 1.8 minutes per question (90 minutes ÷ 50 questions), so pace yourself and don't dwell.
What role does the Series 99 (Operations Professional) qualification cover?
It qualifies individuals who perform or supervise certain covered back-office/operations functions at a member firm.
Term: T+ settlement cycle
The number of business days after the trade date (T) by which a securities transaction must settle; operations staff must track it to ensure timely delivery and payment.
What is ACATS?
The Automated Customer Account Transfer Service — the system used to transfer customer accounts between broker-dealers.
What is the difference between a street name and physical certificate holding?
Street name means securities are held in the broker-dealer's/DTC's name on the customer's behalf (book-entry), while a physical certificate is issued in the customer's name.
What is the purpose of Anti-Money Laundering (AML) programs in operations?
To detect and report suspicious activity, verify customer identity (CIP), and prevent the firm from being used to launder money.
What does DTCC do?
The Depository Trust & Clearing Corporation provides clearing, settlement, and custody (via DTC/NSCC) for securities transactions in the U.S.
What is a fail-to-deliver / fail-to-receive?
A settlement failure where the seller doesn't deliver securities (fail-to-deliver) or the buyer doesn't receive them (fail-to-receive) by settlement date; operations must resolve these.
What is the role of the customer identification program (CIP)?
Under AML rules, a CIP requires firms to collect and verify identifying information before opening an account.
What is a 'covered function' in the context of the Operations Professional requirement?
An operations activity — such as trade settlement, account transfers, or handling of customer funds/securities — that supports the securities business and requires the Operations Professional qualification.
Why is books-and-records recordkeeping critical for operations professionals?
Firms must accurately create and retain required books and records so transactions can be reconstructed and audited by regulators.