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are performed up until settlement, consist of (i) recording, (ii)
figuration, (iii) confirmation, (iv) comparison, and (v) booking.
In the recording function, each transaction is coded, and
each trade is assigned a number that identifies the issuer and
the issue. The place of execution (i.e., a stock exchange) is
also coded along with any other details needed to process the
trade properly.
In the figuration function, petitioner computes the contract
money, commission to be earned, taxes, fees, and all other
related money amounts associated with the trade during nightly
batch processing on the day the trade is executed. The net is
the amount that the customer must pay in the case of a purchase
or is entitled to receive in the case of a sale. The results of
the figuration function are available, in written format, on the
morning following the trade date. In addition, petitioner can
apprise a customer of the commission cost of any trade at the
time of the execution of the trade by accessing a computer screen
designed to compute commissions on customer trades.
The confirmation function involves mailing a written
notification to the customer, usually on the first business day
after the trade is executed. The confirmation serves as an
invoice and written notification of the trade. The confirmation
contains the following information: (1) A description of the
trade, including the name of the security, quantity, execution
price, settlement money, commission, and other fees; (2) trade
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Last modified: May 25, 2011