8.4.1.1.3. Books and Records Rules (Exchange Act Rules 17a-3 and 17a-4)
These two rules require broker-dealers to make and maintain specified business records to assist the firm in accounting for its activities and assist securities regulators in examining for compliance with the securities laws.
Rule 17a-3 requires that detailed records be kept regarding all aspects of their business. These include:
• Blotters, which contain an itemized daily record of all transactions and records of securities accounts and copies of confirmations of all purchases and sales of securities
• Ledgers, which identify all assets and liabilities, income and expenses, and