6.2.1.3.1. 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 identified.
Regarding the transaction itself, the confirmation must identify:
• Trade date and, if available, the time of ex