Securities Trader Qualification Examination (Series 57) - Content Outline - Exam Structure and Administration

Sep 28, 2026

Securities Trader Qualification Examination (Series 57) content outline details the purpose of evaluating entry-level securities trader competency and the required registration pathway that combines Series 57 with the Securities Industry Essentials (SIE) exam. It specifies the exam structure of 50 multiple-choice scored items across core functions and includes 5 additional pretest items that are unscored and randomly distributed. Administration details cover computer-based delivery, tutorial availability, no penalty for guessing, time limits, equating for fair scoring, and restrictions against bringing reference materials, with penalties for cheating.

LanguageEnglish

CategoryExam

FormatPDF

Pages11

Reading Time28 min

AccessFree to download

Purpose of the Exam

Structure of the Exam

Administration of the Exam

Function 1: Trading Activities

1.1.1 Achieving Market Making Status

1.1.2 Understanding Order Types

1.1.3 Market Access

1.1.4 Identifying and Handling Clearly Erroneous Transactions

1.1.5 Display, Execution and Trading Systems

1.1.6 Identifying and Avoiding Prohibited Activities

Securities Trader Qualification Examination (Series 57) CONTENT OUTLINE PURPOSE OF THE EXAM The Series 57 exam is designed to assess the competency of entry-level Securities Traders. The Series 57 exam seeks to measure the degree to which each candidate possesses the knowledge, skills and abilities needed to perform the critical functions of a Securities Trader. In order to obtain registration as a Securities Trader, candidates must pass both the Series 57 exam and a general knowledge co-requisite, the Securities Industry Essentials (SIE) exam. For more information about the activities requiring registration as a Securities Trader, see FINRA Rule 1220(b)(4) . STRUCTURE OF THE EXAM The exam consists of 50 multiple-choice items, and each item consists of four answer choices. The allocation of exam items for each major function is as follows: Function Description Percentage of Exam Items Number of Items | 1 | Trading Activities | 82% | 41 | | --- | --- | --- | --- | | 2 | Maintaining Books and Records, Trade Reporting and Clearance and Settlement | 18% | 9 | TOTAL: 100% 50 ADMINISTRATION OF THE EXAM The exam is administered via computer. A tutorial on how to take the exam is provided prior to taking the exam. Each candidate’s exam includes 5 additional, unidentified pretest items that do not contribute toward the candidate's score. Thepretest items are randomly distributed throughout the exam. Therefore, each candidate’s exam consists of a total of 55 items (50 scored and 5 unscored) . There is no penalty for guessing. Therefore, candidates should attempt to answer all items. Candidates will be allowed 1 hour and 45 minutes to complete the Series 57 exam. All candidate test scores are placed on a common scale using a statistical adjustment process known as equating. Equating scores to a common scale accounts for the slight variations in difficulty that may exist among the different sets of exam items that candidates receive. This allows for a fair comparison of scores and ensures that every candidate is held to the same passing standard regardless of which set of exam items they received. Candidates are not permitted to bring reference materials to their testing session. Severe penalties are imposed on candidates who cheat or attempt to cheat on FINRA-administered exams. [Please visit](Please visit www.finra.org)[ ](Please visit www.finra.org)[www.finra.org](Please visit www.finra.org) for additional details. Function 1: Trading Activities 1.1 Understanding General Trading Practices 1.1.1 Achieving Market Making Status Knowledge of: • The role of the floor broker • The use of market participant identifiers (MPIDs) • Responsibilities of a qualified block positioner • Registration as a market maker • Net capital requirements FINRA Rules 6276 – Voluntary Termination of Registration 5250 – Payments for Market Making 6271 – Registration as an ADF Market Maker or ADF ECN 6275 – Withdrawal of Quotations 6480 – Multiple MPIDs for Quoting and Trading in OTC Equity Securities SEC Rules and Regulations Securities Exchange Act of 1934 Section 3(a)(38)– Definition of a Market Maker 3b-8 – Definitions of “Qualified OTC Market Maker,”“Qualified Third Market Maker” and “Qualified Block Positioner” 1.1.2 Understanding Order Types Knowledge of: • Different order types and their use in the marketplace including: 􀁱 Market 􀁱 Limit 􀁱 Stop 􀁱 Stop limit 􀁱 Market-on-open (MOO), Market-on-close (MOC) 􀁱 Contingent/stipulation (e.g. , day, good-til-canceled (GTC)) 􀁱 Reserve 􀁱 Peg NYSE American Rules 900.3NY – Orders Defined NYSE Arca Rules 6.62-O – Certain Types of Orders Defined 7.31-E – Orders and Modifiers 1.1.3 Market Access Knowledge of: • Requirements for direct market access (DMA)/sponsored access • The purpose of credit and capital limits • Identifying pre-trade risk controls SEC Rules and Regulations Securities Exchange Act of 1934

FAQs

What is the purpose of the Series 57 exam?

The Series 57 exam assesses whether candidates have the knowledge, skills, and abilities needed to perform critical functions of a Securities Trader.

How is the Series 57 exam structured and scored?

The exam contains 50 multiple-choice scored items, plus 5 additional unscored pretest items randomly distributed. There is no penalty for guessing, and scores are equated to a common scale.

What are key administration rules for candidates?

The exam is administered by computer with a tutorial provided beforehand. Candidates are allowed 1 hour and 45 minutes, may not bring reference materials, and face severe penalties for cheating on FINRA-administered exams.

Sep 28, 2026

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