Enabling options access

Prerequisites:

Before using this, you will need a User created with an opened Account. DriveWealth will also need to activate your partner environment for access to trade options.

Provide additional suitability information and acknowledge options disclosure

In order to be evaluated for options trading, investors must provide certain information, including about their trading history and risk profile, as well as acknowledge an Options Disclosure. These additional pieces of information can be included when a user is created or later as an update.

Please refer to FINRA Rule 2360(b)(16) for further details on the information required from an investor seeking approval to trade options.

This table represents an overview of key pieces of information that DriveWealth will require for options onboarding. Many of these fields will have been collected during the standard process of opening an account, while others will be new additions that must be collected specifically for options.

Object	Field
`Personal_Info`	`birthDay`
`Personal_Info`	`birthMonth`
`Personal_Info`	`birthYear`
`Personal_Info`	`marital`
`Employment_Info`	`status`
`Employment_Info`	`company`
`Investor_Profile`	`investmentExperience`
`Investor_Profile`	`annualIncome`
`Investor_Profile`	`networthTotal`
`Investor_Profile`	`riskTolerance`
`Investor_Profile`	`investmentObjectives`
`Investor_Profile`	`networthLiquid`
`Investor_Profile`	`dependents`
`Investor_Profile`	`optionsSuitability.equitiesExperience.experience`
`Investor_Profile`	`optionsSuitability.equitiesExperience.years`
`Investor_Profile`	`optionsSuitability.equitiesExperience.tradesPerYear`
`Investor_Profile`	`optionsSuitability.equitiesExperience.averageTradeSize`
`Investor_Profile`	`optionsSuitability.optionsExperience.experience`
`Investor_Profile`	`optionsSuitability.optionsExperience.years`
`Investor_Profile`	`optionsSuitability.optionsExperience.tradesPerYear`
`Investor_Profile`	`optionsSuitability.optionsExperience.averageTradeSize`

Refer to Create User for details on the expected values of these fields.

DriveWealth partners are expected to collect and evaluate this information to determine whether an investor should be approved for options trading prior to enabling options trading. DriveWealth maintains a Options Approval Matrix and will review accounts on an ongoing basis.

Below is an example of a request for a User that includes all of the information required prior to enabling an Account for options.

{
	"userType": "INDIVIDUAL_TRADER",
	"documents": [
		{
			"type": "BASIC_INFO",
			"data": {
				"firstName": "Justin",
				"lastName": "Smith",
				"country": "USA",
				"phone": "8005882300",
				"emailAddress": "[email protected]",
				"language": "en_US"
			}
		},
		{
			"type": "IDENTIFICATION_INFO",
			"data": {
				"value": "111223333",
				"type": "SSN",
				"citizenship": "USA"
			}
		},
		{
			"type": "PERSONAL_INFO",
			"data": {
				"birthDay": 3,
				"birthMonth": 12,
				"birthYear": 2000,
				"marital": "Single",
				"politicallyExposedNames": null
			}
		},
		{
			"type": "ADDRESS_INFO",
			"data": {
				"street1": "15 Exchange Place",
				"city": "Jersey City",
				"province": "NJ",
				"postalCode": "07302"
			}
		},
		{
			"type": "EMPLOYMENT_INFO",
			"data": {
				"status": "Employed",
				"broker": false,
				"company": "DriveWealth",
				"type": "PROFESSIONAL",
				"city": "Jersey City",
				"country": "USA",
				"position": "CPO"
			}
		},
		{
			"type": "INVESTOR_PROFILE_INFO",
			"data": {
				"investmentObjectives": "Active_DAIly",
				"investmentExperience": "None",
				"annualIncome": 100000,
				"networthLiquid": 58932,
				"networthTotal": 485003,
				"riskTolerance": "Low",
				"fundingSources": ["EMP", "Gambling"],
				"transferFrequencyPerMonth": 7,
				"transferTotalExpected": 45350,
				"investmentHistory12M": 12,
				"dependents": 2,
				"optionsSuitability": {
					"optionsExperience": {
						"experience": "LIMITED",
						"years": "YRS_10_PLUS",
						"tradesPerYear": "YRS_15_24",
						"averageTradeSize": "AVG_0_9999"
					},
					"equitiesExperience": {
						"experience": "LIMITED",
						"years": "YRS_10_PLUS",
						"tradesPerYear": "YRS_15_24",
						"averageTradeSize": "AVG_0_9999"
					}
				}
			}
		},
		{
			"type": "DISCLOSURES",
			"data": {
				"termsOfUse": true,
				"customerAgreement": true,
				"marketDataAgreement": true,
				"rule14b": true,
				"findersFee": true,
				"privacyPolicy": true,
				"dataSharing": true,
				"signedBy": "Justin Smith",
				"optionsAgreement": true
			}
		}
	]
}

Enable on an Account

Once a User has acknowledged the Options Disclosure and provided necessary suitability information that was deemed to meet appropriate thresholds, one or more of their Accounts must be individually enabled for options trading.

To enable the feature for an account, use the Update Account endpoint. Validations exist at this stage to ensure that the FINRA-required information has been captured at the User-level prior to allowing an Account to be enabled for options.

curl --request PATCH \
     --url https://bo-api.drivewealth.io/back-office/accounts/:accountID/ \
--header 'dw-client-app-key: {{bo-appkey}}' \
--header 'Accept: application/json' \
--header 'Content-Type: application/json' \
--header 'dw-auth-token: {{bo-sessionkey}}' \
--data '{
	"userID": "abc-123",
	"accountType": "LIVE",
	"accountManagementType": "SELF",
	"tradingType": "CASH",
	"ignoreMarketHoursForTest": true,
	"ignoreBuyingPower": true,
	"accountFeatures": {
		"options": { "enrolled": true, "optionsLevel": "LEVEL_2" }
	}
}'