Series 27: Customer Confirmations

Customer Confirmations

At or before the completion of any customer transaction, broker-dealers must also provide the customer with a written confirmation or notification specifying the details of the trade. This written confirmation must disclose:

• • Date and time of the transaction
• • Name of the security
• • Price of the security
• • Number of shares purchased or sold
• • Whether the broker-dealer was acting in an agency capacity for the customer
• » If the broker-dealer was acting as agent, then the name of the customer and the compensation the broker-dealer will receive from the other party
• • Whether the broker-dealer was acting in a principal capacity for its own account
• » If acting as a principal, whether the broker-dealer is a market maker in the security
• » If a principal transaction, the reported trade price and any difference between the trade price and the price to the customer
• • Whether the broker-dealer receives payment for order flow
• • If the broker-dealer is not a member of the Securities Investor Protection Corporation

A confirmation must further disclose the transaction’s settlement date. If an equity security is callable, the confirmation must disclose this information, as well as a contact person to get more information.

When a transaction is conducted through a periodic plan or an investment company plan, or through a money market mutual fund, written confirmation is not required before comp