About This Chapter
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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Other chapters within the Series 7 Exam: Study Guide & Practice course
- Advertising & Public Communication in the Securities Industry
- The New Issues Market
- New Issue Regulations in the Securities Industry
- Brokerage Account Types & Restrictions
- Retirement Plans & Tax-Advantaged Accounts
- Handling Customer Investment Information & Discretionary Accounts
- Obtaining Supervisory Approvals for Investment Accounts
- Analyzing Customer Investment Profiles
- Analyzing Customer Financial Statements
- Understanding Equity Securities
- Tax Treatment of Equity Securities Transactions
- Packaged Investment Products
- Variable Life Insurance & Annuities
- Real Estate Investment Trusts
- Direct Participation Programs
- Understanding Options in Investing
- Debt Securities
- Investing in Corporate Bonds
- Municipal Securities
- Municipal Securities Analysis & Regulations
- Registered Hedge Funds
- Asset-Backed Securities
- U.S. Government Agency Securities
- Investment Product Disclosures
- Customer Updates & Record Retention
- Customer Transactions & Confirmations
- Investment Disputes & Customer Complaints
- Addressing Margin Issues