Cancellations and reclamations
Not every order that has been confirmed and cleared or even settled ends in a completed transaction. Good delivery may be disputed before or after a transaction has been settled.
Rejection means that the purchaser refuses to accept securities that have been presented for delivery. Securities presented for delivery may be rejected if the securities are not in good delivery form. Legitimate reasons for rejections may include a missing coupon, mutilated certificate, or improper assignment. Delivery cannot be rejected because of a deterioration in the market or because a company has gone bankrupt or suffered a reduced credit rating or defaulted on a loan.
Reclamation means that the purchaser returns securities previously accepted for delivery. Reclamation is permitted when information is discovered that, if it had been known at the time o