Customer Confirmations

What this video covers

• When a written confirmation must be delivered to the customer, and why settlement date (not trade date) is the legally binding deadline
• The three exceptions to the every-transaction confirmation rule: periodic investment plans, dividend reinvestment plans, and money market fund shares reported on periodic statements
• The core components every confirmation must contain, including trade date, settlement date, CUSIP (Committee on Uniform Securities Identification Procedures), quantity, price, and net amount
• Why accrued interest appears on debt confirmations and never on equity confirmations, and what zero accrued interest means on a stock trade
• How to distinguish agent capacity (commission) from principal capacity (markup or markdown), and why a firm cannot act as both on the same transaction
• When markup disclosure is required on principal trades: corporate or agency debt, non-institutional customer, same-day offsetting trade, with dollar amount and percentage both shown
• The special confirmation layers for penny stocks (inside bid-ask, compensation), callable securities (call flag), and covered corporate or agency debt (execution time to the second plus TRACE reference)