Series 62

Brokerage Office Procedure - Customer Confirmations

All customers must be sent a confirmation at or before the completion of the transaction. Industry rules consider the completion of the transaction to be the settlement date. It is unlawful to settle a transaction without having sent a customer a confirmation of the transaction. If applicable all customer confirmations must include:

  • Customer’s name and account number
  • Account Executive number
  • Description of the transaction i.e. buy or sell
  • Trade date and settlement date
  • Number of shares, bonds, or units
  • Price
  • Yield to the worst for bonds
  • CUSIP Number
  • Amount due or owed
  • Type of account, cash or margin
  • Option specifics (open, closing, covered, uncovered)
  • Location of securities sold
  • Price limits
  • Whether the firm acted as an agent or principal
  • Whether the firm acted as agent for the other side of the transaction “dual agency”
  • Amount of commission or markup or markdown
  • If the firm makes a market in the security
  • If there is a control relationship between the firm and the issuer of the security
  • Information regarding where the transaction was executed
  • If the firm received payment for executing the order with another firm
  • The time of execution or a statement that the time will be furnished upon request
  • Settlement instructions
Clearly Erroneous Reports

If a registered representative reports the execution of a trade to a customer and that report is clearly an error, then that report is not binding on the agent or the firm. The customer must accept the trade as it actually occurred, not as it was erroneously reported so long as the transaction was in line with the terms of their order.

Execution Errors

If a transaction gets executed away from a customer’s limit price or for too many shares of stock, the customer in not obligated to accept the transaction. A registered representative who is informed of an execution error should immediately inform their principal of the error.



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