Operations Professional Exam (Series 99) Study Guide

50 scored questions.

90 minutes (1 hour and 30 minutes).

68%.

$100.

About 1.8 minutes per question (90 minutes ÷ 50 questions), so pace yourself and don't dwell.

It qualifies individuals who perform or supervise certain covered back-office/operations functions at a member firm.

The number of business days after the trade date (T) by which a securities transaction must settle; operations staff must track it to ensure timely delivery and payment.

The Automated Customer Account Transfer Service — the system used to transfer customer accounts between broker-dealers.

Street name means securities are held in the broker-dealer's/DTC's name on the customer's behalf (book-entry), while a physical certificate is issued in the customer's name.

To detect and report suspicious activity, verify customer identity (CIP), and prevent the firm from being used to launder money.

The Depository Trust & Clearing Corporation provides clearing, settlement, and custody (via DTC/NSCC) for securities transactions in the U.S.

A settlement failure where the seller doesn't deliver securities (fail-to-deliver) or the buyer doesn't receive them (fail-to-receive) by settlement date; operations must resolve these.

Under AML rules, a CIP requires firms to collect and verify identifying information before opening an account.

An operations activity — such as trade settlement, account transfers, or handling of customer funds/securities — that supports the securities business and requires the Operations Professional qualification.

Firms must accurately create and retain required books and records so transactions can be reconstructed and audited by regulators.

The process of matching and comparing records between the firm's internal books and external sources (custodians, counterparties, clearinghouses) to ensure accuracy and catch discrepancies.

Maintains the official list of security holders, processes dividend/interest payments, handles stock splits and new issues, and manages record changes for registered securities.

Trades where both sides (buyer and seller) have agreed on all material terms—amount, price, settlement date—and confirmed that information with each other, clearing the way for settlement.

The requirement that firms gather, verify, and maintain customer identity, financial profile, and investment experience before and during the business relationship to assess suitability and risk.

A settlement mechanism that links the transfer of securities to the transfer of cash—securities are delivered only when payment is received, reducing counterparty and settlement risk.

Securities delivered without a simultaneous cash payment, typically in repo agreements or internal transfers, where the counterparty assumes a timing/credit risk.

The National Securities Clearing Corporation (part of DTCC) provides netting, clearing, and risk management services for equity and corporate bond trades, reducing settlement volumes and risk.

SEC rule requiring firms to have locate, margin, and buy-in procedures for short sales; operations staff monitor compliance and enforce buy-in deadlines for fails.

An instruction sent from one firm to another (or to a clearinghouse/DTC) specifying how and when to deliver/receive securities and cash for a particular transaction.

An account that only receives securities and cash, never sends them; used for depository purposes, unallocated customer cash, or settlement of non-principal trades.

The process of casting votes on shareholder matters for securities held in street name; operations ensures votes are transmitted to issuers and records are updated accurately.

An arrangement where cash dividends are automatically used to purchase additional shares; operations must calculate shares, process purchases, and update holdings.

Margin is capital held to cover potential losses on trades, open positions, and counterparty risk; operations monitors margin requirements and enforces calls when balances drop below thresholds.

A certificate or book-entry transfer that meets all technical, legal, and commercial standards for immediate acceptance—correct form, denomination, endorsements, and no liens.

Transactions that cannot settle automatically because of missing or mismatched data (e.g., account number mismatch, price disagreement); operations must investigate and resolve them manually.

Federal Reserve rule setting maximum loan-to-value ratios for margin purchases; operations calculates buying power, enforces margin limits, and processes margin calls.

Affirmation is the confirmation by both counterparties that trade details (price, quantity, settlement date, etc.) match; unaffirmed trades may be rejected and cannot proceed to settlement.

Eliminating physical share certificates and converting to electronic book-entry form in a central depository (DTC); reduces fraud risk, speeds settlement, and improves operational efficiency.

A dedicated account holding customer securities separately from the firm's own assets, required for protecting customer funds and securities in case of firm insolvency.