Series 99: 2.1.1.5 Order Tickets And Order Memoranda

2.1.1.5  Order Tickets and Order Memoranda

Under the Exchange Act, broker-dealers need to show a record of an order. This means they must fill out an order ticket for every order taken, including both executed and unexecuted orders. For example, if a limit order never executes, there still needs to be an order ticket for it. Order tickets need to be filled out for their own accounts as well as their customers’.

This rule only applies to secondary transactions. Thus, order tickets do not need to be filled out for initial public offerings or securities subject to a subscription agreement.

It is also important to know that the order ticket needs to be filled out before the order can be executed. The order ticket is an internal document that will not be shared with cus