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


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