Unit 17 Flashcards
NASDAQ
National association of securities dealers automated quotation (service)
CAT
Consolidated audit trail
NMS
National market system
ATS
Alternative trading systems
TRACE
Trade reporting and compliance engine (not execution)
Corporate debt
Govt agency debt
ABS
CMO
Not
Foreign debt
Money market
Debt securities that are not depository trust eligible
TRFs
Trade reporting facilities
Stock listed on NYSE and NASDAQ
trades made OTC
EMMA
Electronic municipal market access
Operated by MSRB
Municipal securities
ARC
Auction rate securities
CUSIP
Committee on Uniform Securities Identification Procedures
ECN
Electronic Communications Network
4th market
Institutional investors
Open 24 hours/day
UPC
Uniform Practice Code
Created by FINRA
Settlement date
The date the ownership changes between buyer and seller
DEA
Designated examining authority
ACT
Automated confirmation transaction
If one side does not recognize the details of the trade, DK (don’t know) notice is electronically sent
Due bills
Sent by broker-dealer when the wrong party receives a dividend, interest, or rights from the issuer
Transfer agent
The final arbiter of whether a security meets the requirements of good delivery
Surety bond
A form of insurance protecting the transfer agent from claims
Reclamation
Later discovery that certificates were not “good delivery”
Uniform Reclamation Form
Exceptions
1 - bond certificate subject to an in-whole call
2 - bonds where the issuer goes into default after the trade date
DRS
Direct Registration System
The ownership is recorded electronically (book-entry) in the name of the investor on the issuer’s records
