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 4311?
An introducing firm that acts as an intermediary for another introducing firm(s) for the purpose of obtaining clearing services from the carrying firm must notify such carrying firm of the existence of such arrangement(s) and the identity of the other introducing firm(s).
What is a fully disclosed clearing agreement?
In a “fully disclosed clearing agreement,” the introducing firm identifies the names of its customers to the. clearing firm. This is in contrast to “omnibus” clearing agreement where the clearing firm is not advised of the identity of the customers.
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 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 a finra questionnaire?
A questionnaire distributed by underwriters’ counsel to the company’s directors, officers and security holders in connection with a public offering in order to gather and confirm information that must be provided to FINRA.
Is IBKR a broker-dealer?
In its broker dealer agency business, IBKR provides direct access (“on line”) trade execution and clearing services to institutional and professional traders for a wide variety of electronically traded products including stocks, options, futures, currencies, bonds, gold, crypto* and funds worldwide.