If a buyer cannot pay for a trade within five business days from the trade date, the broker/dealer may request an extension from its designated examining authority (DEA). Regarding extensions, all of the following are TRUE EXCEPT:
A) if the broker/dealer chooses to close out the position the account will be frozen for 90 days.
B) introducing broker/dealers who do not clear their own trades may request extensions for their customers directly from the DEA.
C) the broker/dealer has the option of ignoring amounts due of $1,000 or less without violating Regulation T requirements.
D) if the customer cannot pay by the end of the extension, the broker/dealer has the option to either request an additional extension from its DEA or sell the securities to close the position.
Answer: B) introducing broker/dealers who do not clear their own trades may request extensions for their customers directly from the DEA.