Confirmation of Transactions


SEC Rule 10b-10
This rule requires broker-dealers to provide the following information to customers before or at the completion of a securities transaction. The following must be disclosed in a written notification:

  • The date and time of the transaction (or the fact that the time of the transaction will be furnished upon written request to such customer) and the identity, price, and number of shares or units (or principal amount) of such security purchased or sold by such customer

  • Whether the broker or dealer is acting as agent for such customer, as agent for some other person, as agent for both such customer and some other person, or as principal for its own account; and if the broker or dealer is acting as principal and whether it is a market maker in the security

  • The amount of any remuneration received or to be received by the broker from such customer in connection with the transaction

The broker-dealer shall give or send information requested pursuant to this rule within five business days of receipt of the request. However, in the case of information pertaining to a transaction effected more than 30 days prior to receipt of the request, the information shall be given or sent to the customer within 15 business days.

NASD (now known as FINRA) Rule 2230: Confirmations
This rule requires a broker-dealer at or before the completion of each transaction with a customer, to give or send to such customer written notification disclosing:

  1. whether such member is acting as a broker for such customer, as a dealer for his or her own account, as a broker for some other person, or as a broker for both such customer and some other person; and

  2. in any case in which such member is acting as a broker for such customer or for both such customer and some other person, either the name of the person from whom the security was purchased or to whom it was sold for such customer and the date and time when such transaction took place or the fact that such information will be furnished upon the request of such customer, and the source and amount of any commission or other remuneration received or to be received by such member in connection with the transaction.

Account Statements

NASD (now known as FINRA) Rule 2340: Customer Account Statements
This rulerequires broker-dealers to provide customers with a statement at least quarterly, although if any activity has occurred in the account, the usual practice is to provide a statement for the month in which the activity has occurred. The account statement contains the following information:

  • Cash balances
  • All security positions
  • Activity in the account since the last statement
Registration and Regulation of Brokers and Dealers

Related Articles
  1. Financial Advisor

    What Advisors Need to Know About Rule 3210

    Here's what advisors and brokers need to know about FINRA Rule 3210.
  2. Investing

    The Importance Of Analyzing Accounts Receivable

    While investors often focus on revenues, net income, and earnings per share, they should not overlook the importance of analyzing accounts receivable.
  3. Investing

    What Are Transaction Costs?

    Transaction costs are expenses incurred from buying or selling securities.
  4. Small Business

    What's Involved in Customer Service?

    Customer service is the part of a business tasked with enhancing customer satisfaction.
  5. Investing

    What Does a Dealer Do?

    Dealers possess certain qualities that distinguish them from brokers and traders.
  6. Personal Finance

    NYIF Instructor Series: SEC Customer Protection Rule

    In this short instructional video Jack Farmer explains what SEC Rule 15c3-3 is and how it applies to you as an investor.
  7. Investing

    How Real Estate Agents Get Paid

    Most real estate agents are paid a percentage of the property’s selling price, which is called a commission.
  8. Financial Advisor

    FINRA Rule 2273: Your Recruiting Questions Answered

    An in-depth look at and Q&A on FINRA's new recruiting practices rule, which goes into effect in November.
  9. Financial Advisor

    Evaluating Your Stock Broker

    Make sure you're getting the best service by staying informed and involved.
  10. Investing

    Picking Your First Broker

    If you're a rookie investor, your first big investment decision should be an informed one. Read about how to choose your first broker here.
Frequently Asked Questions
  1. What is the history of the S&P 500?

    Discover the history of the S&P 500, which sophisticated market participants consider to be the best index to understand ...
  2. Did the repeal of the Glass-Steagall Act contribute to the 2008 financial crisis?

    Understand the argument that the repeal of the Glass-Steagall Act caused the 2008 financial crisis, and learn why the argument ...
  3. Why do MBS (mortgage-backed securities) still exist if they created so much trouble in 2008?

    Read several different arguments in favor of allowing the trade of mortgage-backed securities, even after the financial crisis ...
  4. How did the ABX index behave during the 2008 subprime mortgage crisis?

    Read about the disastrous performance of the various ABX indexes in the subprime mortgage crisis of 2008 during the middle ...
Trading Center