FINRA: Reminding firms to be careful with low-priced equity securities
Finra has provided guidance for brokerage firms on including low-priced equities in customer margin and firm proprietary accounts.
Finra has provided guidance for brokerage firms on including low-priced equities in customer margin and firm proprietary accounts. Firms should take into account volatility and concentrated positions in a single customer account and across all customer accounts, as well as the daily volume and market capitalization of each security when imposing ‘house’ maintenance margin requirements, the rule states. For more information, click here.
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