Good Faith Violation (“GFV”)

Regal Discount Securities through its clearing agent First Southwest Company. is required to implement policies concerning trading with unsettled funds. Your account can be charged with a Good Faith Violation (GFV) if you sell a security that was purchased with unsettled funds and then sold prior to the settlement of the first sell (see example below). Four (4) GFV's in any twelve (12) month rolling period will result in your account being restricted to “Funds in Advance” of trading for a period of 90 days. If an account trades through a 90-day restriction, any resulting loss in the account will be the responsibility of the client and your account may be coded for "no more business." Five (5) GFV’s in any twelve (12) month rolling period will result in your account being restricted to liquidating only for 90 days.

Example:

• On Monday customer sells “A” for $5,000, of a long, settled and fully paid for position.
• On Monday customer buys “B” for $5,000.
• On Monday, Tuesday or Wednesday customer sells “B”, the sale would result in a good faith violation.

For questions contact Regal at 1-800-927-3425.

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The information on this web site is for discussion and information purposes only. All accounts accepted at the discretion of Regal which accepts customer orders only on an unsolicited basis, and does not make any recommendations regarding any security or securities product with the possible exception of orders executed by our full service bond desk. Nothing contained herein should be considered as an offer to buy or sell any security or securities product. Online trading has inherent risks due to loss of online services or delays from system performance, risk parameters, market conditions, and erroneous or unavailable market data.