Series 26: Trade Confirmations And Completing A Transaction

Trade Confirmations and Completing a Transaction

SEC Rule 10b-10 requires broker-dealers to provide customers with a trade confirmation at or before the completion of a transaction. The SEC defines the conditions under which a transaction is made complete.

A purchase is judged complete when the securities are paid for on the settlement date. Payment may occur by cash payment, by debiting the customer’s account, or by reducing the customer’s separately managed account. A separately managed account is similar to a mutual fund, but the portfolio of securities is unique to a single account and managed by the i