What is the Regulation T initial margin requirement for the Series 7?

The Regulation T initial margin requirement is 50% of the market value of the transaction. This applies to both long purchases and short sales in a margin account. Set by the Federal Reserve Board (FRB). The minimum margin deposit is $2,000 (unless the total purchase is less than $2,000).

What is T+1 settlement and what securities does it apply to?

T+1 means settlement occurs one business day after the trade date. Under SEC Rule 15c6-1 (effective May 2024), T+1 applies to stocks, corporate bonds, municipal bonds, and mutual fund trades. Government securities (T-bills, T-notes, T-bonds) settle T+1 as well. Options and cash transactions settle same day.

What is the Regulation T payment deadline in a cash account?

Under Federal Reserve Regulation T, the payment deadline in a cash account is S+2 (2 business days after settlement). Since regular way settlement is now T+1, the Reg T deadline is effectively T+3 (trade date + 1 day settlement + 2 days). Firms may impose earlier house requirements, often requiring payment by settlement (T+1). If payment is not received, the firm may liquidate the position.

What is the SIPC coverage limit?

SIPC coverage is $500,000 per separate customer, which includes a maximum of $250,000 for cash claims. SIPC protects against broker-dealer failure — it does NOT protect against market losses, fraud, or bad investment advice.

What is the minimum equity for a pattern day trader?

A pattern day trader must maintain at least $25,000 in equity in the account on any day that day trading occurs. A pattern day trader is defined as someone who makes 4 or more day trades in a 5-business-day period in a margin account.

What are the AML reporting thresholds for SAR and CTR?

SAR (Suspicious Activity Report): File when suspicious transaction threshold of $5,000 is met, based on firm policy and context. CTR (Currency Transaction Report): Required for cash transactions exceeding $10,000, filed under the Bank Secrecy Act. These are key AML (Anti-Money Laundering) numbers for the Series 7 and SIE.

What is the Rule 144 filing threshold?

Under SEC Rule 144, a Form 144 filing is generally required when selling more than 5,000 shares or $50,000 worth of restricted or control stock in a 3-month period. Rule 144 also requires a 6-month holding period for restricted securities of reporting companies.

What is the wash sale rule for the Series 7?

The wash sale rule disallows a tax loss deduction if you buy a substantially identical security within 30 days before OR 30 days after the sale at a loss. This creates a 61-day total window (30 days before + sale day + 30 days after). The disallowed loss is added to the cost basis of the replacement shares.

What is the annual gift tax exclusion for 2025/2026?

The annual gift tax exclusion is $19,000 per donor, per recipient for 2025/2026. Gifts up to this amount can be made without incurring gift tax or using any of the lifetime exemption. A married couple can give $38,000 per recipient through gift-splitting.

When do standard equity options expire?

Standard monthly equity options are associated with the third Friday of the expiration month. Legacy exam materials may still reference Saturday expiration. Exercise notices may be submitted until 5:30 PM ET on the last trading day.

What are the long and short maintenance margin requirements?

Long maintenance margin is 25% minimum equity (FINRA Rule 4210). Short maintenance margin is 30% minimum equity for stocks at or above $5 per share. For short sales of stocks below $5 per share, the requirement is the greater of 100% of short market value or $2.50 per share.

What is the maximum mutual fund sales charge and 12b-1 fee?

The maximum mutual fund sales charge is 8.5% of POP under FINRA Rule 2341. The maximum 12b-1 fee (distribution fee) is 0.75% of average annual net assets. For a fund to market itself as 'No Load', its 12b-1 fee cannot exceed 0.25% (25 basis points).

What is the FINRA 5% markup policy?

The FINRA 5% Policy is a guideline (not a hard rule) for markups, markdowns, and commissions on securities transactions. Markups can be deemed unfair even below 5% depending on the facts and circumstances, including the type and price of the security, the size of the transaction, and the level of service provided.

Series 7 & SIE · Updated 2026

The "Key Numbers" Data Bank

Every Regulatory Limit, Threshold & Timeframe You'll Be Tested On

The Series 7 and SIE test these specific numbers heavily. Don't just memorize them — visualize the logic with our Margin Simulator.

⏱️ Settlement 💰 Margin 📋 Regulatory

About this guide: Covers every testable regulatory number for both the FINRA Series 7 (General Securities Representative) and SIE (Securities Industry Essentials) exams, updated for 2026. Each entry includes the rule source citation. Published by 2DollarTests.

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Series 7 & SIE: Settlement Cycles & Timeframes

5 numbers · When trades settle and deadlines hit

Regular Way Settlement

Stocks, corporate bonds, municipal bonds. SEC Rule 15c6-1

T + 1

Reg T Payment Deadline (Cash Accounts)

S+2 (2 business days after settlement). Since settlement = T+1, this equals T+3. Firms may require earlier payment (often by settlement) as a house rule. FRB Reg T

T+3 (S+2)

Cash Settlement

Payment and delivery on trade date. Uniform Practice

Same Day

Options Expiration

Standard monthly contracts. Legacy Saturday language may still appear on the exam. OCC Rules

3rd Friday

Wash Sale Rule

30 days before OR after the loss sale (61-day total window). Disallowed loss is added to cost basis of replacement shares. IRS Pub 550

30 Days

⚠️

Common Exam Trap

The wash sale window is 61 days total, not 30. It's 30 days before the sale + the sale day + 30 days after. The exam loves asking "how many total days" to trip you up.

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Series 7: Margin Requirements — The "Big 4" & Cheap Stock Rule

5 numbers · Reg T, maintenance, minimums

Reg T Initial

50%

FRB Reg T

Long & short initial.

Long Maintenance

25%

FINRA 4210

Minimum equity (long).

Short Maintenance

30%

FINRA 4210

Standard (≥ $5/share).

Minimum Deposit

$2,000

FINRA 4210

Unless purchase < $2k.

Short Margin "Cheap Stock" Rule

For short sales of stocks below $5.00/share: requirement is the greater of 100% of SMV or $2.50/share. This overrides the standard 30% framework. FINRA 4210

100% / $2.50

💡 The "Big 4" hierarchy: 50% initial (Reg T, set by Fed) → 25% long maintenance → 30% short maintenance → $2,000 minimum deposit (all FINRA 4210).

Simulate These Rules

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Series 7 & SIE: Regulatory Limits & Thresholds

9 numbers · SIPC, AML, Rule 144, fees & more

SIPC Coverage (Total)

Per "separate customer." Protects against broker-dealer failure — NOT market losses. SIPC Act

$500,000

SIPC Coverage (Cash Sublimit)

Maximum cash claim within the $500k total coverage. SIPC Act

$250,000

Pattern Day Trader (PDT) Minimum Equity

Must be maintained on any day that day trading occurs. 4+ day trades in 5 business days = PDT. FINRA / NYSE

$25,000

Gift Tax Exclusion (Annual)

Per donor, per recipient. Married couple can give $38,000 via gift-splitting. IRS 2025/2026

$19,000

Suspicious Activity Report (SAR)

File if suspicious transaction threshold is met; firms apply policy + context. Bank Secrecy Act

$5,000

Currency Transaction Report (CTR)

Report cash transactions exceeding $10k. Filed under AML rules. Bank Secrecy Act

$10,000

Rule 144 De Minimis (Form 144 Filing Trigger)

Exceeding this in a 3-month period generally triggers a Form 144 filing requirement for restricted/control stock. SEC Rule 144

5,000 shs / $50k

FINRA "5% Policy" Guideline

Not a bright-line rule. Markups/markdowns can be deemed unfair below 5% depending on facts and circumstances. FINRA Guidance

Max 12b-1 Fee (Distribution)

To market as "No Load," 12b-1 must be ≤ 0.25% (25 bps). FINRA 2341

0.75%

Max Sales Charge (Mutual Funds)

Maximum varies based on fund structure; breakpoints and asset-based charges can reduce the allowed maximum. FINRA 2341

8.5%

⚠️

Common Exam Trap

SIPC protects against broker-dealer failure, not market losses. If your portfolio drops from $500k to $200k, SIPC won't help. Also: SAR ($5k) is suspicious activity; CTR ($10k) is any cash transaction over the threshold — they test the difference.

Master the Application.

Knowing the numbers is Step 1. Applying them to complex scenarios is Step 2. Practice until you can't miss.

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Series 7 & SIE: Settlement Cycles & Timeframes

Series 7: Margin Requirements — The "Big 4" & Cheap Stock Rule

Series 7 & SIE: Regulatory Limits & Thresholds

Master the Application.

Series 7 and SIE Key Numbers Summary