Rule 10b-10 Confirmation of Securities Transactions (17 C.F.R. 240.10b-10)

OMB 3235-0444

OMB 3235-0444

Rule 10b-10 under the Securities Exchange Act of 1934 ("Exchange Act") requires broker-dealers to disclose basic trade information to customers regarding their securities transactions. The information required by Rule 10b-10 includes: the date and time of the transaction, the identity and number of shares bought or sold, and the trading capacity of the broker-dealer. In addition, depending on the trading capacity of the broker-dealer, the Rule requires the disclosure of commissions and, under specified circumstances, mark-up and mark-down information. For transactions in debt securities (other than U.S. savings bonds and municipal securities) the Rule requires the disclosure of redemption and yield information. For transactions in securities futures products in a futures account, the Rule permits alternative information disclosure requirements. This alternative information includes, the date the transaction was executed; the identity and number of shares bought or sold; the price, the delivery month, and the exchange on which the transaction was executed; the source and amount of broker remuneration; whether the broker received payment for order flow; and, the fact that other specified information about the execution of the transaction will be available upon written request. Rule 10b-10 also requires broker-dealers to inform their customers if they are not members of the Securities Investor Protection Corporation ("SIPC"). The purpose of this disclosure is to ensure that customers are not led to believe that their accounts are subject to SIPC protection when they are not. In addition, the Rule requires broker-dealers to state on confirmations whether they receive payment for order flow. The confirmation has become a customary tool in the industry, and it serves several functions: firms use it as a billing statement; it serves as a customer invoice; it informs investors of the details of a transaction allowing the customer to check for errors or misunderstandings; it provides consumer information, allowing investors to evaluate the cost and quality of the services provided by broker-dealers; it discloses possible conflict of interest that may arise between the investor and broker-dealer; and it safeguards against fraud, by permitting the customer to detect problems associated with a transaction.

The latest form for Rule 10b-10 Confirmation of Securities Transactions (17 C.F.R. 240.10b-10) expires 2023-04-30 and can be found here.

OMB Details

Generation of Securities Transaction Confirmation Notices (17 C.F.R. 240.10b-10)

Federal Enterprise Architecture: Economic Development - Financial Sector Oversight


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