Customer Trade Confirmation and Completing a Transaction
For every securities transaction, the SEC dictates that a trade confirmation must be given to a customer at or before the completion of a transaction. This includes private placements.
The following information must be disclosed on the required trade confirmation:
- • Date and time of the transaction
- • Name of the security
- • Price of the security
- • Number of shares purchased or sold
- • Whether the broker-dealer was acting in an agency capacity for the customer
- • If the broker-dealer was acting in an agency capacity for another person, then the name of the person and the compensation the broker-dealer will receive from the other party for the transaction.
- • Whether the broker-dealer was acting in a principal capacity for its own account
- » If acting as a principal, whether the broker-dealer is a market maker in the security
- » If a principal transaction, the reported trade price and any difference between the trade price and the price to the customer
- • Whether the broker-dealer receives payment for order flow
- • If the broker-dealer is not a member of SIPC
The following disclosures must be added if the security