What is finra rule 4311?
What is finra rule 4311?
FINRA Rule 4311 (a)(1) prohibits a member, unless otherwise permitted by FINRA, from entering into an agreement for the carrying, on an omnibus or fully disclosed basis, of any customer account in which securities transactions can be effected (for purposes of Rule 4311 , “customer account” or “account”), unless the …
What is a carrying agreement?
(f) A carrying agreement may authorize an introducing firm to issue negotiable instruments directly to its customers on the carrying firm’s behalf, using instruments for which the carrying firm is the maker or drawer, provided that the parties comply with SEA Rule 15c3-3 and further that the introducing firm represents …
What is a fully disclosed broker dealer?
A fully disclosed firm is one that introduces its customer business to another firm for the purpose of clearing and settling transactions. Your broker-dealer executes trades for other broker-dealers and after execution settles those transactions for them.
What is a carrying firm?
When you open an account with a brokerage firm that is a clearing or “carrying” firm, the firm not only handles your orders to buy and sell securities, but it also maintains custody of your securities and other assets (like any cash in your account).
What is a fully disclosed firm?
Fully disclosed firms (introducing BDs) introduce their customer’s business to clearing firms. While the fully disclosed firm can execute transactions for its customers, all functions associated with clearing the transactions, such as accepting cash and securities for delivery, are handled by the clearing firm.
What is an introducing broker Iiroc?
A Type (1-4) introducing/carrying broker arrangement is one of four introducing carrying broker arrangements where an introducing broker is allowed to introduce clients to a carrying broker. The agreement is required by IIROC under Dealer Member Rule 35, Introducing/Carrying Broker Arrangements.
What are finra rules?
FINRA’s rules and guidance strive to protect investors and ensure the integrity of today’s rapidly evolving market. FINRA’s rules and guidance strive to protect investors and ensure the integrity of today’s rapidly evolving market. FINRA is here to help keep investors and their investments safe.
Who are members of a clearing house?
Members of The Clearing House include JPMorgan Chase & Co., Bank of America Corp., Citigroup Inc., Bank of New York Mellon Corp., Deutsche Bank AG, U.S. Bancorp and Wells Fargo & Co.
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