Series 82: Customer Trade Confirmation And Completing A Transaction

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