Series 28: Allocation Of Responsibilities

Allocation of Responsibilities

Each carrying agreement in which accounts are to be carried on a fully disclosed basis must specify and allocate the responsibilities of each party with regard to:

• • Opening and approving accounts
• • Accepting orders
• • Transmitting orders for execution
• • Executing orders
• • Extending credit
• • Receipt and delivery of funds and securities
• • Preparing and transmitting confirmations
• • Maintaining books and records
• • Monitoring accounts

The agreement must make the carrying firm r