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87-75 Revised Series 4 — Registered Options Principal (ROP) Qualification Examination and New Study Outline

TO: All NASD Members and Other Interested Persons


On January 1, 1988, the options regulators will install a revised ROP qualification examination on the PLATO testing network. The revised examination will be expanded to include index, interest rate, and foreign currency option questions. A revised Series 4 study outline incorporating the new material will be available shortly.


As different standardized option products have been introduced to the marketplace, the options qualification examinations have been revised to include new questions on those products. The first Registered Options Principal (ROP) examinations in late 1974 only tested for equity call options. Equity put option questions were added in 1977. In 1980, a joint industry/regulatory task group completely upgraded the ROP examination to reflect the expanded importance of options in the securities industry.

Since 1980, however, several non-equity option products have been introduced, along with specialized examinations for those product lines. The Interest Rate Options Examination (Series 5) was installed when standardized U.S. Treasury debt options became available. Likewise, the Foreign Currency Options Examination (Series 15) was installed when foreign currency options were introduced. Index options were also introduced during this period, although no specialized examination beyond the Series 7—General Securities Registered Representative Examination was required.

In 1986, a joint industry/self-regulatory organization task group began to review the ROP examination program and to revise the test questions and study outline to include new material on index, interest rate, and foreign currency options. This group's work is nearing completion and a revised study outline will be available shortly.


On January 1, 1988, the revised Series 4 — Registered Options Principal Qualification Examination will be installed on the PLATO testing network. It will include questions on index, interest rate, and foreign currency options in addition to the traditional equity option, put, and call questions. To accommodate this new material, the ROP examination has been increased to 125 questions. Three hours will be allowed to complete the test.

The prerequisite for ROP registration status continues to be the Series 7 — General Securities Registered Representative Examination or previous registration as a general securities registered representative. The $50 examination fee remains unchanged.

A revised examination study outline will be available shortly and can be obtained by sending a request with a check for $2, payable to the NASD, to: NASD, Attn: Book Order Department, P.O. Box 9403, Gaithersburg, MD 20898-9403. (Add 20 percent per order for first class return.)

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Questions concerning this notice can be directed to David Uthe, Senior Qualifications Analyst, NASD Qualifications Department, at (301) 738-6695.


John T. Wall
Executive Vice President
Member & Market Services

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