Large Option Position Reporting Requirements

Member firms are required to report certain large option positions to the OCC that are established for any account, or for any group of accounts acting in concert. Firms must file a large option position report (LOPR) once the position established exceeds the filing threshold on the same side of the market. For most securities the current filing threshold is 200 contracts on the same side of the market. Firms are required to file the initial

LOPR data, as well as any changes in reportable positions to the OCC via the LOPR submission message. Once the data is collected by the OCC, the OCC will in turn provide the data to the self regulatory organizations.  Firms are required to send their LOPR batch file to the OCC no later than 8:00 PM CST on or before T+1. The date that the firm establishes, modifies or closes an LOPR is know as the effective date. Firms are only required to send an LOPR submission to update a report when there is:

  • An increase in a reported position
  • A decrease in a reported position
  • A reported position is closed

If a firm reports a large option position for an account it is required to report any changes to that position as long as the position remains above the threshold limit. If the previously reported position falls below the contract threshold the firm only needs to file the reduction in the number of contracts in a single report. No subsequent reports are required for the position as long the position remains below the threshold limit.

TAKE NOTE!

The test may refer to the effective date of an LOPR submission as the trade date.

Final thoughts

You have completed the series 9 exam review available on Investopedia. This is only a portion of what you will need to know to for the test. The series 9 can be a challenging exam for many people. This is especially true for people who do not conduct a lot of option business.  We recommend that you read your textbook two to three times. In addition you should review your notes carefully and take as many series 9 practice questions as you can. In order to be fully registered as a General Securities Sales Supervisor you must also pass the series 10 exam

The Securities Institute is a John Wiley & Sons partner company and publishes world class series 9 textbooks and exam prep software. All of us at Investopedia, The Securities Institute & John Wiley & Sons wish you the best of luck on your series 9 exam. Click here For more series 9 exam training materials


Related Articles
  1. Financial Advisor

    Series 7 Exam Prep: Options

    One of the most challenging topics in the series 7 exam is options. Find out what you need to know before you take the test.
  2. Financial Advisor

    Series 6 Exam Prep: What Is A Security?

    Before you take the series 6, you need to understand what a security is as defined by the exam.
  3. Personal Finance

    The Series 79 Exam: What It Is And When You Need It

    If you're getting into the field of investment banking, you'll need to know all about the Series 79.
  4. Financial Advisor

    Introduction To The Series 65 Exam

    The Series 65 is required in many states in order to be a fee-based advisor. Find out what it is and whether you need it.
  5. Financial Advisor

    Sell-Side Analysts Need Series 86/87 Exams

    Though these tests are not particularly difficult or comprehensive, passing them is mandatory to work as a sell-side analyst.
  6. Financial Advisor

    Series 65 Exam Prep: The Investment Advisor

    Before you take the series 65, you need to understand who is an investment advisor as defined by the exam.
  7. Financial Advisor

    Who Needs to Take the Series 65?

    Most states require individuals to pass the Series 65 exam in order to act as investment advisors.
  8. Financial Advisor

    Series 63, Series 65 Or Series 66?

    When joining the world of investment professionals, you must take the right exams.
  9. Personal Finance

    CFA Vs. Series 7: Which is Easier

    Find out which is exam is easier: The Chartered Financial Analyst (CFA) exam, or the Series 7 securities exam for registered representatives.
  10. Insights

    FINRA Files Plans to Change Series 7 and Other Exams

    New details have emerged on the Securities Industry Essentials Exam required for becoming a registered representative.
Frequently Asked Questions
  1. What is a good annual return for a mutual fund?

    Learn the key factors that determine if a mutual fund's return is "good" for you and your needs?
  2. How are industrial goods different from consumer goods?

    Understand the difference between industrial goods and consumer goods, and learn the different types of industrial goods ...
  3. What causes inflation, and does anyone gain from it?

    In this article, we will examine the fundamental factors behind inflation, different types of inflation and who benefits ...
  4. What is the difference between a buy-side analyst and a sell-side analyst?

    The main difference between a buy-side analyst and sell-side analyst is the type of firm that employs them and the people ...
Trading Center