SIE practice questioneasyTrade Confirmations
After executing a trade for a customer, a broker-dealer must send a trade confirmation by:
- AThe end of the trading day
- BWithin 30 days of the trade
- CAt or before completion of the transaction (settlement)✓ Correct answer
- DNo later than the settlement date
Explanation
Why C — At or before completion of the transaction (settlement)
SEC Rule 10b-10 requires broker-dealers to send a written confirmation of each transaction at or before the completion of the transaction (settlement). The confirmation must include: the date and time of the trade, the security, quantity, price, capacity (agent or principal), commission or markup, and settlement date. This ensures customers have timely documentation of their trades for review and record-keeping.
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