Question

Under FINRA rules, a notice of closeout on a regular way contract not properly completed may be distributed how many business days after settlement?

Answer 1

Under FINRA rules, a notice of closeout can be issued two business days after the settlement date on a regular way contract that has not been properly completed.

Step-by-step explanation:

Under FINRA rules, if a regular way contract is not properly completed, a notice of closeout can be distributed two business days following the settlement date. This is known as the "regular way" settlement, which typically occurs on the second business day after the trade date (T+2). In the context of securities trading, the threat of a closeout applies pressure to complete the transaction, thereby helping to ensure the integrity and efficiency of financial markets.