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Unit 17 - Processing Transactions (3qs) - Coggle Diagram
Unit 17 - Processing Transactions (3qs)
Order Flow
Order Memorandum
Report of execution
CALLED THE ORDER TICKET, PRIOR TO THE TRADE, DON4T KNOW WHAT THE PRICE IS GOING OT BE , HAVE TO PUT AN ACCOUNT NUMBER SOLICITED OR UNSOLICITED AND QUALIDIERS
Order Flow : CLIENT, TO AGENT, TO THE BD ( MM) FLOOR TRADER
Nasdaq Quotation Service
LEVEL 1 IS LEST EXPENSIVE LEAST INFORMATION (MOST BRANCH OFFICERS HAVE LEVEL 1) , LEVEL 2 IS MID RQNGE PRICE WISE, ALL THE QUOTES THERE ARE , LEVEL 3 IS THE MOST EXPENSIVE, INTER QUOTE IN THE SYSTEM , EXPENSIVE TO GET THAT SERVICE
Nasdaq Reporting
Rule: Consolidated Audit Trail (CAT) :check:
Dark Pools of Liquidity
POST ON CONSOLIDATED TAPE
Trade Reporting and Compliance Engine (TRACE)
Trade Reporting Facilities (TRFs)
Role of the NYSE Designated Market Maker (DMM)
ROLE: MAINTAIN LIQUIDITY FOR SECURITIES,
Municipal Bond Reporting
Electronic Municipal Market Access (EMMA) / FOR RETAIL CUSTOMERS
Real-time Transaction Reporting System RTRS, FOR BOND TRADERS, THE PROFESSIONAS
Types of markets
Third Market
Fourth Market - Electronic Communication Networks (ECNs) , ECN: PRIVATE INSTITUTIONAL INSTITUATIONL NETWORK HAS TO BE APPROVED BY SEC BUT PUBLIC CANNOT ACCESS
Grey Market : WHERE STOCKS THAT WERE PREVIOUSLY LISTED GO WHEN THEY HAVE BEEN DELISTED AND PROBALBY OUT FO BUSINESS
Broker-Dealer Services
Safe Harbor
Hard Dollars , Soft Dollars :check:
FINRA's Uniform Practice Code (UPC) / BEHQVE WHEN DONG TRQNSQCTION FROM FIRM TO FIRM
Uniform Practice Code (UPC)
Making Good Delivery
Time for Delivery
Regular way settlement
Cash Settlement
Seller's Option Contracts : SELLER'S CHOICE , THE SELLER CAN SAY THAT HE WANTS TO SETTLE TODAY INSTEAD OF TOMORROW
When-,As-, and If-Issued Contracts (When-Issued Trades) : I LIKE TO BUY THIS BOND BUT NOT ISSUED YET. ENTER AN ORDER FOR THEM, WITHOUT KNOWING THE PRICE WHEN THEY COME OUT WILL BUY THEM AS THEY ARE , PRE ORDER IT
Don't Know (DK) Notice :check: SENT A FORM THAT A CLIENT WANTS TO TRANSFER FROM ONE FIRM TO ANOTER AND THE ACCOUNT CANNOT BE FOUND, DISCREPENCY, FROM BD TO BD , RECEVING BROKER WILL SAY THEY DON T KNOW
Due Bills : TRANSFER ACCOUNT FROM ONE FIRM TO ANOTHER FIRM, DIVIDEND FROM OLD FIRM HAVE TO BE GIVEN TO THE NEW
Good Deliverable Form
Good Delivery Clearing Rule (100 Share Uniform Units) : MAKE STACKS OF A 100 ANYTHNG THQT IS LEFT OVER CAN'T STQCK TO MORE THQN A 100 ,
Good Delivery for Bonds : 1000 $, COUPONS
Transaction processing rules and regulations
Legal Requirements for Good delivery
Assignment
Stock or Bond Power: SELL CUSIP NUMBER NOBODY CAN PROCEED UNTIL PUT THEM TOGETHER :check:
Signature Guarantee : MEDALLION STAMP , AND SIGNATURE AND CERTIFY WINEDD OF SIGNATURE
Legal Transfer Items : WHEN IS TRANSFER COMPLETE, WHEN SECURITY IS SETTLED IN THE OWNER4S ACCOUNT AND CASH HAS BEEN RECEIVED IN THE SELLER'S ACCOUNT, BOTH SIDES ARE DONE
CUSIP Regulations : BQR CODE
Legal Opinion: Municipal Securities : INDEPENDENT QTORNEY, UNQUALIFIED OPINION, CITY WANTS TO BORROW MONEY GET AN ATTORNEY AND LOOK AT BOND RESOLUTION, AND YES LEGAL RIGHT TO BORROW MONEY, TAX EXEMPT STATUS,
Fail to deliver : DON'T GIVE IN IT A DAY AND GET IN THE OPEN MARKET AND MAKE PAY THE DIFFERENT
Reclamation : RECLAME THE TRANSACTION
Power of substitution :check:
1 TO 4 LINKED TOGETHER
Strategies
Arbitrage :check: