Series 53: Transaction Information

Taken from our Series 53 Online Guide

Transaction Information

A customer trade confirmation must identify the parties and describe the specifics of the transaction.

Regarding the parties, the confirmation must contain:

Customer name

Whether the customer is a purchaser or seller

Dealer name, address, and phone number

Whether the dealer acted as a principal or agent

For agency transactions, the dealer must specify whether it was an agent for the customer, another entity, or both. It must also indicate the source and amount of any remuneration the dealer will receive from the customer or any other party. For principal transactions, the markup or markdown is generally included in the net price. It must be separately disclosed only for riskless principal transactions with a dealer’s retail customers. A riskless principal transaction occurs when a broker-dealer buys or sells a security to a customer and offsets its risk by taking an equal and opposite position on the same security on the same trading day. The lower risk should entail a lower markup/markdown and be separately identi

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