General Securities Sales Supervisor (Series10) Practice Exam

In which scenario must duplicate trade confirmations be sent by the executing member?

1. A When opening an account

2. B Only if agreed upon by both parties

3. C Upon request of the employer member

4. D Not necessary for transactions under $10,000

The correct answer is: C Upon request of the employer member

The correct answer indicates that duplicate trade confirmations must be sent by the executing member upon request of the employer member. This requirement is in place to ensure that the employer member has a complete and accurate record of all transactions executed on behalf of their clients. Trade confirmations serve as important documentation, providing details of the transaction such as the security traded, the price, and the number of shares. When an employer member requests duplicate confirmations, it reinforces compliance and transparency in the transaction process. This is particularly important in circumstances where the employer member needs to monitor trading activity for compliance with internal policies or regulatory obligations. In contrast, the other scenarios presented do not impose a requirement for sending duplicate confirmations. Opening an account typically involves establishing the account details but does not necessitate immediate duplicate confirmations. The notion of sending duplicates only if agreed upon by both parties reflects a discretionary practice rather than a mandated protocol. Additionally, the idea that duplicate confirmations are unnecessary for transactions under $10,000 is misleading, as the requirement for duplicate confirmations primarily hinges on the request from the employer member, regardless of transaction size.