- Series 99 Exam
- The FINRA qualification exam for the Operations Professional registration, consisting of 50 scored questions administered over 90 minutes with a passing score of 68%.
- Trade Settlement
- The process by which a securities transaction is finalized, with the buyer paying for and receiving the security and the seller delivering it and receiving payment. This is a core covered function an Operations Professional supports.
- Clearing
- The intermediate steps between a trade being executed and settled, including confirming trade details, matching, and calculating what each party owes or is owed. Clearing firms handle this on behalf of introducing brokers.
- Introducing Broker
- A broker-dealer that solicits and services customer accounts but passes trade execution, clearing, and custody to a separate clearing firm rather than handling them itself.
- ACATS (Automated Customer Account Transfer Service)
- An automated system used to transfer a customer's account assets from one broker-dealer to another. Processing account transfers is a covered operations function.
- Anti-Money Laundering (AML)
- The framework of laws, rules, and internal procedures designed to detect and prevent the use of the financial system to disguise illegally obtained funds. Operations staff play a role in monitoring transactions and reporting suspicious activity.
- Suspicious Activity Report (SAR)
- A confidential report a financial institution files with regulators to flag transactions that may involve money laundering, fraud, or other illicit activity. Filing is triggered when activity meets defined suspicion thresholds.
- Customer Identification Program (CIP)
- A firm's required procedures for verifying the identity of each customer opening an account, forming a key part of Know Your Customer and AML compliance.
- Margin Account
- A brokerage account in which the customer borrows funds from the broker-dealer to purchase securities, using the account's assets as collateral. Operations personnel maintain margin balances and process related calculations.
- Corporate Action
- An event initiated by an issuer that affects its securities, such as a dividend, stock split, merger, or tender offer. Operations teams process these events and update customer positions accordingly.
- Books and Records
- The account, transaction, and financial documentation that broker-dealers are required to create and retain under SEC and FINRA rules. Accurate recordkeeping is central to the operations function.
- Operations Professional (OP)
- A registered person who engages in, or supervises, covered back-office functions such as trade settlement, account transfers, and customer account maintenance at a broker-dealer. The Series 99 exam qualifies individuals to register in this role.