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Ch 27: Transactional Delivery Obligations & Settlement Procedures

About This Chapter

This chapter takes you through the various rules, regulations, and laws that apply to transactions in the securities industry. Spend some time with these lessons to increase your finance knowledge not only about this, but also about settlement procedures.

Transactional Delivery Obligations & Settlement Procedures - Chapter Summary

This chapter walks you through order ticket requirements in the securities industry as well as common uses and issues with automated trade execution. You can also study several FINRA rules and rule series and get an overview of NASDAQ market center rules. By the end of this chapter, you should be able to:

  • Explain the settlement cycle for broker-dealer transactions
  • Understand the regulatory reporting requirements for investment transactions
  • Explore FINRA Rule 11000, 6000, 7000 Series
  • Discuss the FINRA rules for other trading practices, adjustment of orders, and trade reporting
  • Define MSRB Rules G-12 and G-14
  • Give an overview of the NASDAQ market center rules
  • Explain the CBOE and NYSE rules for delivery obligations and settlement procedures

Jump right into this chapter and you'll find that our professional instructors have made these rules and regulations easy to understand. Take the self-assessment quiz after each lesson to check your understanding, and use the chapter-end test to see if you are ready to move on.

14 Lessons in Chapter 27: Transactional Delivery Obligations & Settlement Procedures
Test your knowledge with a 30-question chapter practice test
Order Ticket Requirements in the Securities Industry

1. Order Ticket Requirements in the Securities Industry

The FINRA and the SEC have strict books and records regulations. In this lesson, you'll learn about the information required on order tickets when brokers place orders for the purchase and sale of securities.

Automated Trade Execution: Definition, Use & Issues

2. Automated Trade Execution: Definition, Use & Issues

Traders are constantly trying to buy low and sell high. Automated trading can help with this. In this lesson, we'll take a look at automatic trading systems, including their pros and cons.

Settlement Cycle for Broker-Dealer Transactions

3. Settlement Cycle for Broker-Dealer Transactions

In this lesson you will learn about the settlement cycle for broker-dealer transactions, the importance of when settlement and delivery occurs, and the SEC rule that governs settlement cycles.

Regulatory Reporting Requirements for Investment Transactions

4. Regulatory Reporting Requirements for Investment Transactions

Regulatory reporting of investment transactions is essential to maintaining integrity within the financial markets. In this lesson, we will review various methods used to report investment transactions.

FINRA Rule 11000 Series: Uniform Practice Code

5. FINRA Rule 11000 Series: Uniform Practice Code

FINRA rule series 11000 addresses the Uniform Practice Code. This rule provides basic guidelines governing securities transactions. This lesson will provide a comprehensive overview of the rule. It will also highlight specific guidance within the rule.

FINRA Rule 5330: Adjustment of Orders

6. FINRA Rule 5330: Adjustment of Orders

In this lesson you will learn about conditional orders. We'll look into the effect that events such as dividends and stock splits have on them as well as exceptions to these rules.

FINRA Rule 6000 & 7000 Series

7. FINRA Rule 6000 & 7000 Series

This lesson provides an overview of FINRA Rules 6000 and 7000, which relate to transaction data and reporting standards. Examples are included to further explain the trade reporting process.

FINRA Rule 6140: Other Trading Practices

8. FINRA Rule 6140: Other Trading Practices

What happens when a financial professional manipulates the market with words or actions? In this lesson, we'll take a look at FINRA Rule 6140, including what it is intended to do and specific prohibited activities.

FINRA Rule 6700: Trade Reporting & Compliance Engine

9. FINRA Rule 6700: Trade Reporting & Compliance Engine

This lesson explains how debt securities are bought and sold in a secondary market and describes the reporting system and information required to report these transactions.

MSRB Rule G-12: Uniform Practice

10. MSRB Rule G-12: Uniform Practice

The Municipals Securities Rulemaking Board is responsible for the creation of rules governing municipal securities transactions. In this lesson, we'll review the procedures for the settlement of municipal securities transactions outlined in MSRB Rule G-12.

MSRB Rule G-14: Reports of Sales or Purchases

11. MSRB Rule G-14: Reports of Sales or Purchases

This lesson briefly explains the municipal securities market before covering the requirements and reporting standards used for documenting the purchase and sale of these securities.

Overview of NASDAQ Market Center Rules

12. Overview of NASDAQ Market Center Rules

This lesson deals with an overview of the NASDAQ Market Center rules. You'll learn about the requirements for NASDAQ market makers and NASDAQ Market Center execution services.

CBOE Rules for Delivery Obligations & Settlement Procedures

13. CBOE Rules for Delivery Obligations & Settlement Procedures

This lesson walks through the process of fulfilling options contracts when they are exercised and the parties and rules involved. Several examples are used throughout the lesson to provide additional clarity.

NYSE Rules for Delivery Obligations & Settlement Procedures

14. NYSE Rules for Delivery Obligations & Settlement Procedures

The lesson provides an overview of the NYSE Rules related to delivery obligations and settlement procedures. The important rules that you will learn include Rule 63, Rule 130, Rule 133, Rule 135 and Rule 136.

Chapter Practice Exam
Test your knowledge of this chapter with a 30 question practice chapter exam.
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Practice Final Exam
Test your knowledge of the entire course with a 50 question practice final exam.
Not Taken

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