Chapter 3 - Customer Trade Confirmations (FINRA RULE 2232) Flashcards Preview

Chapter 3 -Supervision of Customer- Related Activities > Chapter 3 - Customer Trade Confirmations (FINRA RULE 2232) > Flashcards

Flashcards in Chapter 3 - Customer Trade Confirmations (FINRA RULE 2232) Deck (13):
1

FINRA Rule 2232 requires its members to give or send a confirmation to customers by ?

at or before the completion of any transaction and to be in compliance with SEC Rule 10b-10.

2

T/F - Trade confirm must include whether the member acted as agent or principal

T

3

T/F - Trade confirm must include whether the member acted as dual agent

True

4

T/F - Trade confirm must include markup or markdown in a principal trade of a listed security

True

5

T/F - Trade confirm must include payment for order flow

True

6

T/F - Trade confirm must include If the member is a market maker in the security

True

7

T/F - Trade confirm must include if a control relationship exists between the issuer and the member

True

8

The customer trade confirm of a debt security traded on the basis of a dollar price must include :

The dollar price at which the transaction was effected, and the yield to maturity calculated from that dollar price.

9

The customer trade confirm of a debt security effected on the basis of yield , the confirmation must show :

The yield at which the transaction was effected, including the percentage amount and its either current yield, yield to maturity, or yield to call.

10

With respect to an NMS stock, FINRA requires that the confirm include the following:

settlement date and, where applicable, the fact that a security is a callable equity security.

Lastly, that the customer may contact the member firm for additional information about the security must be found on the customer confirmation.

11

SEC Rule 10b-10 requires that confirmations for DVP/RVP trades be delivered to customers :

no later that T+1.

12

Confirms for CMOs must include

There is no requirement to disclose yield on a trade confirmation for CMOs. If the broker-dealer chooses to do so, additional information would be required. However, the nominal face amount and interest rate, the maturity date, and the settlement date along with the weighted average coupon (WAC) should be included on CMO confirms.

13

Does the SEC require that a confirm include whether it was solicited or un-solicited ?

No