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Reference guide

FINRA Series 57 Course Notes

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Section 1F1: Trading ActivitiesPreview
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  • 40 more common mistakes in Pro version
  • 4 more exam tips in Pro version
  • 161 more related questions in Pro version

Summary

This function represents 41 of the 50 scored Series 57 questions (82%). Study the decision rule for each objective, the named FINRA/SEC/Cboe authority, exact timing or price triggers, and the common distractor that substitutes business convenience for the regulatory requirement.

Key Points

  • Payments for Market Making: Rule 5250 bars a member or associated person from accepting direct or indirect payment or other consideration from an issuer, affiliate, or promoter for publishing a quotation, acting as a market maker, or submitting a related application.

Common Mistakes

  • Payments for Market Making: Avoid treating disclosure or a claimed liquidity benefit as a cure.

Exam Tips

  • Function 1 carries 41 of 50 scored questions (82%); prioritize order handling, prohibited practices, Reg M, OTC/options/short-sale rules, and customer-order obligations.
Section 2F2: Books and Records, Trade Reporting, Clearance and SettlementPreview
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  • 17 more key points in Pro version
  • 8 more common mistakes in Pro version
  • 4 more exam tips in Pro version
  • 33 more related questions in Pro version

Summary

This function represents 9 of the 50 scored Series 57 questions (18%). Study the decision rule for each objective, the named FINRA/SEC/Cboe authority, exact timing or price triggers, and the common distractor that substitutes business convenience for the regulatory requirement.

Key Points

  • Choosing the Designated Reporting Facility: Off-exchange transactions in NMS stocks are generally reported through an applicable FINRA trade-reporting facility (TRF) or ADF process, not the OTC Reporting Facility used for OTC equity securities.

Common Mistakes

  • Choosing the Designated Reporting Facility: Avoid confusing an off-exchange NMS trade with an OTC Equity Security.

Exam Tips

  • Function 2 carries 9 of 50 scored questions (18%); these are high-value points because reporting deadlines, facilities, record fields, CAT events, clocks, and settlement are objective and testable.