Regulatory Alerts2024-03-19 | Regulatory Notice 24-08Added · Updated
FINRA Adopts Amendments Relating to Protected Option and Warrant Positions Under FINRA Rule 4210
FINRA amended Rule 4210 to create an exception for short index option or warrant positions offset by long positions in non-leveraged index mutual funds or ETFs tracking the same underlying index. This exception exempts such protected positions from specific margin requirements provided the protection value remains at least 95 percent of the aggregate underlying index value and specific margin thresholds are met. The amendments became effective on the date of issuance of Regulatory Notice 24-08.
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