Series 28: Trade Confirmations

Trade Confirmations

At or before a trade’s completion, which means the time at which a trade is settled, brokerage firms on each side of the transaction are required by Rule 10b-10 to provide a written confirmation to their clients. Like an order ticket, the trade confirmation generally delineates the name of the security, whether the security was bought or sold, the quantity sold, and its price. In addition, it must provide such information as:

• • The date and time of the transaction (or if the transaction is not yet completed, assurance that the time will be provided on request)
• • Whether the broker-dealer is acting as agent for the customer and/or some other person
• • Whether the broker-dealer is acting as principal for its own account and whether it is a market maker in the security
• • For transactions in a debt security bought or sold on the basis of a dollar price, its dollar price and yield