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FINRA · 2026 · Free

Free Series 99 Practice Exam

Series 99 Operations Professional practice exam covering trade settlement, customer accounts, regulatory compliance, and broker-dealer financial operations. No signup required.

50Scored Questions
105 minTime Limit
70%Passing Score
$80Exam Fee
4 yearsScore Valid
⚙️

Series 99 Exam Topics

Operations & Settlement

Trade processing, clearance and settlement (T+1, T+2), DTC, NSCC, fails to deliver, corporate actions, and margin operations. ~34% of Series 99 — largest section.

17 questions
👤

Customer Accounts & Compliance

Account opening, KYC, AML/BSA requirements, OFAC, customer statements, and account transfers (ACATS). ~28% of Series 99.

14 questions
📜

Regulatory Framework & Ethics

FINRA rules, SEC regulations, firm registration requirements, continuing education, and professional conduct standards. ~20% of Series 99.

20 questions
💰

Financial Reporting & Operations Controls

Net capital rule (Rule 15c3-1), customer protection rule (Rule 15c3-3), FOCUS reports, and internal controls. ~18% of Series 99.

20 questions

About the Series 99 Exam

The Series 99 Operations Professional exam qualifies individuals to perform operational and back-office functions at FINRA-member broker-dealers that would otherwise require registration as a representative or principal. It was created to provide a targeted license for operations staff — including trade settlement, cashiering, margin, and compliance operations personnel — who handle securities but do not engage in sales activities and do not need the broader Series 7 or Series 6.

The exam contains 50 scored questions (60 total with 10 unscored) with a 105-minute time limit and a 70% passing score. The SIE is a prerequisite. The Series 99 covers broker-dealer financial operations, customer account operations, trade settlement mechanics, regulatory reporting, and the recordkeeping requirements specific to securities firms' operational functions.

50Scored Questions
105 minTime Limit
70%Passing Score
SIEPrerequisite
FINRAAdministered By

Series 99 Exam Topic Breakdown

TopicWeightKey Areas
Broker-Dealer Financial Operations30%Net capital rule (Rule 15c3-1), customer protection rule (Rule 15c3-3), reserve formula, possession and control, SIPC coverage
Customer Account Operations28%Account types, margin accounts (Regulation T, Reg U), account documentation, customer statements, cash vs. margin account rules
Trade Processing and Settlement24%Standard settlement (T+1 for equities), DVP/RVP, fails, buy-ins, DTC/DTCC, clearing and custodial functions
Recordkeeping and Regulatory Reporting18%FINRA/SEC books and records requirements, FOCUS reports, suspicious activity reports (SARs), order audit trail (OATS/CAT)

Sample Series 99 Exam Questions

1. Under SEC Rule 15c3-3 (the Customer Protection Rule), a broker-dealer must maintain a "reserve account" at a bank for the benefit of customers. The amount deposited must be computed using the:

  • A. Net capital formula under Rule 15c3-1
  • B. Total value of all customer securities held at the firm
  • C. Reserve formula — credits (customer free credit balances and other amounts owed to customers) minus debits (amounts owed by customers or their related accounts)
  • D. SIPC coverage limit multiplied by the number of customer accounts
Correct: C. Rule 15c3-3 requires broker-dealers that hold customer funds and securities to perform a weekly reserve computation. The reserve formula calculates credits (amounts owed to customers — primarily free credit cash balances) minus debits (amounts customers owe the firm). If credits exceed debits, the excess must be deposited into the special reserve bank account within one business day of the computation. This rule is a cornerstone of customer asset protection and is heavily tested on the Series 99.

2. Standard settlement for equity securities executed in the U.S. markets is currently:

  • A. Same day (T+0)
  • B. One business day after trade date (T+1)
  • C. Two business days after trade date (T+2)
  • D. Three business days after trade date (T+3)
Correct: B. The SEC shortened the standard settlement cycle for most equity securities from T+2 to T+1 effective May 28, 2024. T+1 means that trades executed on Monday settle by Tuesday. This is a significant and currently tested change — prior exams tested T+2 but the current standard is T+1. Government securities and options have different settlement conventions (T+1 and T+1 respectively). Know T+1 as the current equity standard for the Series 99.

3. A broker-dealer's net capital falls below its required minimum under SEC Rule 15c3-1. The firm must:

  • A. Immediately notify all customers and offer to transfer their accounts
  • B. Increase its proprietary securities positions to generate revenue
  • C. Cease conducting a securities business and immediately notify FINRA and the SEC
  • D. File a Form BD amendment with the SEC within five business days
Correct: C. When a broker-dealer's net capital falls below the required minimum under Rule 15c3-1, it must immediately cease conducting a securities business and notify its designated examining authority (DEA — typically FINRA) and the SEC. This is not a grace period — it is an immediate operational halt. The net capital rule exists to ensure broker-dealers have sufficient liquid assets to meet their obligations to customers. Failure to maintain net capital and continuing to operate is a serious violation. The firm may not use the deficiency as an opportunity to trade its way back to compliance.

Series 99 Study Tips

Broker-Dealer Financial Operations (30%) is the highest-weighted section — the customer protection rule (Rule 15c3-3) and net capital rule (Rule 15c3-1) are the two most critical topics. Know the reserve computation concept well enough to identify whether credits exceed debits and what must be deposited. SIPC coverage ($500,000 per account, $250,000 cash sublimit) is a specific fact tested regularly.

For Trade Settlement (24%), the shift to T+1 settlement for equities is a current exam topic — know T+1 for equities, T+1 for governments, and T+1 for options. DVP/RVP (delivery versus payment, receipt versus payment) is tested in the context of institutional settlement. For Recordkeeping (18%), know the SEC Rule 17a-3 and 17a-4 requirements for books and records — particularly the retention periods (3 years for most records, 6 years for certain core records) and the two-year easily accessible rule.

Frequently Asked Questions — Series 99

Who needs the Series 99 license?

The Series 99 is required for associated persons of FINRA member firms who engage in operations functions that would otherwise require registration — including cashiering, margin processing, stock loan, trade settlement, and compliance operations. It was designed for operations and back-office staff who are not sales-facing but handle securities and funds in ways that trigger FINRA registration requirements. Many operations professionals at broker-dealers hold the Series 99 rather than the Series 7.

What is the difference between the Series 99 and Series 7?

The Series 7 is a broad representative license authorizing solicitation and sale of securities to customers. The Series 99 is an operations-specific license that does not authorize securities sales. A Series 99 holder can process trades, manage settlement operations, and handle customer accounts from an operational standpoint but cannot recommend or sell securities. The Series 99 covers operational rules in depth that the Series 7 only touches on briefly.

What is the customer protection rule and why does it matter?

SEC Rule 15c3-3 requires broker-dealers to safeguard customer assets by maintaining a special reserve bank account and keeping physical possession or control of customer fully paid and excess margin securities. The rule prevents broker-dealers from using customer assets for their own purposes. The weekly reserve computation and the possession and control requirements are the operational mechanics that Series 99 holders typically work with directly — making it the most important rule on this exam.

What changed with T+1 settlement and when did it take effect?

The SEC shortened the standard settlement cycle for U.S. equities from T+2 to T+1 effective May 28, 2024. This means most stock trades now settle one business day after execution rather than two. The change was intended to reduce counterparty risk and free up collateral. For the Series 99 exam, T+1 is the current standard for equity securities. Government securities already settled at T+1 and options at T+1 — equities catching up has created consistency across most markets.

How long should I study for the Series 99?

Most candidates study 50–70 hours over 4–5 weeks. The Series 99 is considered a moderately difficult FINRA exam because it tests operational rules that are specific and detail-oriented. Candidates already working in broker-dealer operations often have a significant advantage. Focus on the customer protection rule, net capital rule, settlement mechanics, and books and records requirements — these four areas together account for nearly the entire exam.

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