When must an options agreement be signed and returned by the customer?

The requirement for an options agreement to be signed and returned by the customer is established by regulations governing options trading. Specifically, customers must return the signed options agreement within 15 days of account approval. This timeframe ensures that customers acknowledge their understanding of the risks involved in trading options and agree to the terms set by the brokerage firm regarding such transactions.

Once the options account is approved, the broker-dealer allows the customer to begin trading options, but it is crucial for the firm to have the signed agreement on record to protect both the customer and the firm while facilitating compliance with regulatory standards. If the agreement is not returned within this timeframe, the account may be subject to limitations regarding trading in options until the necessary documents are completed.