Unit 9- Brokerage Support Services Flashcards
Order Ticket
registered representative fills one out to physically enter customer order (or can be done electronically)
Trade Confirmation
confirms trade, settlement date, amount of money due from or owed to the customer
Regular Settlement Date is how many days after Trade date?
3 business days
Customer Account statements may be send quarterly instead of monthly if:a) & b)
a) no activity
b) no penny stocks
Uniform Practice Code (UPC)
standardizes time and date of settlement
Cash Settlement Date is how many days after Trade date?
ZERO, same day
Seller’s Option Contract
if cannot settle in 3 business days, it locks in the price but gives them between 4 business days end of contract
- seller must provide buyer with 1 day written notice
Regulation T Payment
When customers are required to pay:
2 business days after regular settlement date
(aka within 5 biz days after trade date)
What is NOT included on a when-issued confirmation?
settlement date, accrued interest, and total dollar amount at settlement (SAT)
What IS included on a when-issued confirmation?
Trade Date
Description of security
DK (Don’t Know) Trade
An interdealer trader is DKed when one side doesn’t recognize the details of the trade submitted by the other side
Due Bill
sent when wrong party receives the dividend
Good Delivery Clearing Rule (100- Share Uniform Units)
must be able to make piles of 100 (ie a 300 share sale could not be delivered in 4 75-share units)
Customer Confirmation
certification that states the details of the trade
-sent out to customer by the completion of the trade
An Assignment / Power of Substitution
Assignment of the new owner to that security- states his/her name
*Required for good delivery
