brokerage support services Flashcards
what is regular way settlement for corporate and municipal securities?
2 business days after trade ( T+3)
what is regular way settlement for government securities?
1 business day after trade (T+1)
cash settlements for corporate, muni, and govt securities
settle same day as trade
when is payment required on security purchases?
by the settlement date
when is payment required on REG T purchases?
with 5 business days
what are some actions broker/dealers can take if payments are late?
- request extension (FINRA or exchange)
- sell out and freeze for 90 days
what is the order flow after execution of buy/sell of a security?
-order department
-purchase and sells-mails trade confirmations to customers
-margin-compute requirements
-cashier-receipt and delivery of money and certificates
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