Surety Bond for Broker-Dealer


Why III is incorrect? … If a surety bond is required, one must be posted.


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Hi @Hungry_turquoise_par, good question! It’s the last line of the explanation:

In lieu of a surety bond, firms can post cash and/or securities in the amount of the surety bond requirement.

Although the regulators talk about this as a surety bond being required, the idea is that some sort of collateral is required, which could be cash or securities rather than specifically a bond.

Got it thanks Justin, Wow, you are good!

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