Series 99: 2.1.4.1 Clearing: Trade Comparison And Broker-to-Broker Confirmations

2.1.4.1  Clearing: Trade Comparison and Broker-to-Broker Confirmations

For trades that are not settled and cleared electronically, each party to a transaction (each broker-dealer) must exchange a confirmation of the trade on or before the first business day following the transaction. Trade confirmations are done on a Uniform Comparison Form, which identifies the security, the parties, the price, and any other trade details, including the trade and the settlement dates. Both confirmations must be compared to each other to ensure there are no discrepancies. If discrepancies do exist, a corrected Uniform Comparison Form or confirmation must be sent by the party in error. For cash settlements that are not settled or cleared electronically, the confirmations must be exchanged on the same day as the transaction.

The key components that must be identified for a securities trade to be compared are the:

• • Buy side and the sell side
• • Issuer and financial instrument traded
• •