4.3.1. Customer Confirmation
Customers must receive, from their broker-dealer, a written confirmation for each trade at or before the settlement date. Each trade confirmation must describe the security in detail:
- • The name of the issuer
- • The maturity date of the bond
- • Its interest rate
- • The credit backing
- • Whether it is callable
- • Its taxable status
It also must describe the particulars of the deal:
- • The name and address of the broker or dealer
- • Whether the broker or dealer acted as agent or principal
- • Whether the trade was a purchase or sale
- • The trade date
- • The time of execution or a promise to provide it on request
- • The settlement date
- • The amount of accrued interest to be paid or received
Calculated yields must be disclosed on the customer’s trade confirmation. The yield listed on the trade confirmation will typically be the same yield that was quoted to the customer. No yield calculation is required for bonds sold at par because the yield to maturity is simply the same as the coupon rate. In addition, no yield cal