4.1.1. 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 is a debt secur