Series 28: Specialists And Market Maker Accounts

Taken from our Series 28 Online Guide

Specialists and Market Maker Accounts

A broker-dealer that carries a market maker or specialist account must deduct for each account it carries any deficiency in that market maker or specialist’s required collateral. This deduction also applies to any transaction that a broker-dealer guarantees or endorses in exchange-listed options written by a specialist. The required collateral for these accounts is 25% of the market value for all long positions and 30% of market value for all short positions. If the collateral falls short of this requirement, the broker-dealer must deduct the difference from its net capital. The account must be marked to market daily.

SEC Rule 15c3-1(c)(2)(xi)

Other Haircuts
Undue Concentration	Value makes up more than 10% of firm’s tentative net capital	Additional haircut applied to the portion that exceeds 10% tentative net capital Equity securities—15%

Scenario

Description

Haircut

Undue Concentration

Value makes up more than 10% of firm’s tentative net capital

Additional haircut applied to the portion that exceeds 10% tentative net capital

Equity securities—15%

+ Read More

More Series 28 Info

What are people saying?

Create an Account

Since you're reading about Series 28: Specialists And Market Maker Accounts, you might also be interested in:

Series 82 - 2.1.2.2.1. Powers of Attorney

Series 24 - 5.8.4.4. Guaranteeing the Endorsement

Series 27 - Release of Disciplinary Complaints and Decisions

Series 53 - Chapter Six

Series 65 - Section Four

Series 3 - 6.2.1. Chart Construction

Series 14 - 5.1.5.1. The Taping Rule

Please Enable Javascript
to view this content!

Site Login

TESTIMONIALS

What are people saying?

I took this Series 28 today and passed on my first try! I think the practice exams helped a ton, though in general, I would say the actual test seemed (at least to me), more difficult than the practice exams. Either way, couldn't have done it without the Solomon Exam Prep.

Gayle Espinosa. Los Angeles, CA

I wanted to let you know I passed my Series 28 today!! Thanks for great prep materials. I have been working really long hours at my job and it was a challenge finding the time to study. The video lectures proved to be a big help. I’m glad that exam is over!!!

Nikita Brown, BMI. Atlanta, GA

Last August 2020 I passed the Series 28 on the first try using your materials. I just wanted to drop in and let you know I passed the Series 27 exam today!! I am so happy today as I took the test in Jan of this year and missed it by 3 points. I switched up my focus and really zoned in the most heavily weighted chapters. This is by far the hardest exam I have taken. Thank you Solomon for your excellent study materials. I'll be back when I pass the next one ;)

Nikita Brown, BMI. Atlanta, GA

I would definitely recommend Solomon study materials. "Ask the Professor" was a great tool, and Karen answered my questions faster than I could keep up! I was easily able to pass the Series 79 sticking to Solomon's 6 week study program.

Julie B, Vancouver, BC Canada

Completing the Series 7 was a requirement for my current position. After seeing the material and dedication Solomon Exam Prep put into the SIE material, I knew Solomon’s material would be perfect for me again. I had access to STC material and tried to go through it first but it was too content heavy and at certain points, very confusing. I decided to move back over to Solomon for the 7 and was blown away yet again by how great the material is. Solomon has figured out how to properly prepare people for this exam in my opinion. Solomon Exam Prep focuses on teaching the concept rather than bogging you down with so much material. THAT IS SO HELPFUL! Of course the material is important but it’s extensive. After using Solomon Exam Prep for the Series 7, I was able to fully understand the concepts which made it so much easier to select the best questions on the exams. All the other training programs bury you deep with content, which makes it almost impossible to understand the concepts. If you get questions on the exam that you have not seen before, only knowing specific material will not help you. But if you understand the concepts (like Solomon Exam Prep helped me do) you can break down the question and find the best answer based on your understanding of the concept as a whole. That’s a much better method and Solomon Exam Prep has figured this out! I strongly suggest buying the study guide. You won’t regret it!

Jared M. Albany, New York

Recently passed the FINRA Series 22 Exam. Though the exam is short, the material is obscure and not what you deal with every day in the industry. Solomon did a great job of putting together material and providing a deep understanding. After about 6 weeks of studying and taking 2 practice exams a day, I passed the exam on the first try! Thanks for putting together a robust training product.

Eric Stroehle, Steelwater Wealth Management. Oakville, CT