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Rule 325 Capital Requirements

This rule interpretation is no longer applicable effective February 8, 2010.

(1) Long Put or Call Options

In computing net capital, a long put option or a long call option which is not an obligation of a clearing agency registered under the Securities Exchange Act of 1934 or has not been endorsed or guaranteed by a member organization shall have no value and shall not operate to increase net capital under any provision of this Rule.
/01 SEC no-action letter to NYSE dated January 31, 1990 provides interim conditions for recognition of long unlisted options, for U.S. Government debt securities endorsed or guaranteed by a limited group of narrowly defined issuers.

If the terms and conditions of the interim no-action letter are strictly adhered to and solely for such period of time as the no-action letter remains in effect, the Exchange will permit recognition of unlisted option instruments as detailed in the commission's no-action letter as consisting and conforming with Rule 325(c)(1) and the purpose for which it was adopted. See NYSE Interpretation memo No. 90-3 dated May 22, 1990.

(No. 90-3, May, 1990)

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