3816. Trade confirmations

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    1. A Dealer Member must promptly send the client a written confirmation of all purchases and sales of securities and of all trades in futures contracts and futures contract options, and copies of notices of all other debits and credits of money, securities, property, proceeds of loans and other items for the client’s account.

    2. The written confirmation must contain, at a minimum, the day and the marketplace or marketplaces where the trade took place, or marketplace disclosure language acceptable to IIROC; the fee or other charge, if any, levied by any securities regulatory authority in connection with the trade; the name of the salesperson, if any, involved in the transaction; the name of the dealer, if any, used by the Dealer Member as its agent to effect the trade, the settlement date of the trade: 

      and

      1. in the case of trades in securities:

        1. the quantity and description of the security,

        2. the consideration,

        3. whether or not the person or company that executed the trade acted as principal or agent, and

        4. must maintain and make available to the client or IIROC, upon request, the name of the person or company from or to or through whom the security was bought or sold, if acting as an agent in a trade upon an equity marketplace,

      2. and

      3. in the case of trades in futures contracts:

        1. the commodity and quantity bought or sold,

        2. the price at which the contract was entered into, and

        3. the delivery month and year,

      4. and

      5. in the case of trades in futures contract options:

        1. the type and number of futures contract options,

        2. the premium,

        3. the delivery month and year of the futures contract that is the subject of the futures contract option,

        4. the declaration date, and

        5. the striking price,

      6. and

      7. in the case of trades in mortgage-backed securities, and subject to the proviso below:

        1. the original principal amount of the trade,

        2. the description of the security (including interest rate and maturity date),

        3. the remaining principal amount (RPA) factor,

        4. the purchase/sale price per $100 of original principal amount,

        5. the accrued interest,

        6. the total settlement amount, and

        7. the settlement date,

        8. provided that in the case of trades entered into from the second clearing day before month end to the fifth clearing day of the following month, inclusive, a preliminary confirmation shall be issued showing the trade date and the information in sub-clauses 3816(2)(iv)(a), 3816(2)(iv)(b), 3816(2)(iv)(d) and 3816(2)(iv)(g) and indicating that the information in sub-clauses 3816(2)(iv)(c), 3816(2)(iv)(e) and 3816(2)(iv)(f) cannot yet be determined and that a final confirmation will be issued as soon as such information is available.  After the remaining principal amount factor for the security is available from the central payor and transfer agent, a final confirmation shall be issued including all of the information required in subsection 3816(2),

      8. and

      9. in the case of confirmations other than confirmations relating to trades involving debt securities and other over-the-counter traded securities:

        1. where the confirmation is sent to a retail client:

          1. the amount of each transaction charge, deferred sales charge or other charge in respect of the transaction, and

          2. the total amount of all charges in respect of the transaction,  

        2. where the confirmation is sent to an institutional client:

          1. the commission, if any, charged in respect of the transaction,

      10. and

      11. in the case of debt securities:

        1. in the case of a purchase, where the debt security is a stripped coupon or a residual debt instrument:

          1. the yield thereon calculated on a semi-annual basis in a manner consistent with the yield calculation for the debt instrument which has been stripped, and

          2. the yield thereon calculated on an annual basis in a manner consistent with the yield calculation for other debt securities which are commonly regarded as being competitive in the market with such coupons or residuals such as guaranteed investment certificates, bank deposit receipts and other indebtedness for which the term and interest rate is fixed,

        2. in the case of a purchase, where the debt security is neither a stripped coupon nor a residual debt instrument:

          1. the yield to maturity calculated in a manner consistent with market conventions for the security traded, 

          2. where the debt security is subject to call prior to maturity through any means, the notation of “callable” must be included, and

          3. where the debt security has a variable coupon rate, the notation “The coupon rate may vary.” must be included,

        3. where the debt security trade is not a primary market transaction and the trade confirmation is being sent to a retail client, either of the following:

          1. the total amount of any mark-up or mark-down, commission or other service charges the Dealer Member applied to the transaction, or

          2. the total amount of any commission charged to the client by the Dealer Member and, if the Dealer Member applied a mark-up or mark-down or any service charge other than a commission, the following notification or a notification that is substantially similar:

            “Dealer firm remuneration has been added to the price of this security (in the case of a purchase) or deducted from the price of this security (in the case of a sale).  This amount was in addition to any commission this trade confirmation shows was charged to you.”,

      12. and

      13. in the case of all over-the-counter traded securities other than debt securities, including contracts for difference and foreign exchange contracts, but excluding primary market transactions and over-the-counter derivatives with non-standardized contract terms that are customized to the needs of a particular client and for which there is no secondary market, and the trade confirmation is being sent to a retail client, either of the following:

        1. the total amount of any mark-up or mark-down, commission or other service charges the Dealer Member applied to the transaction, 

        2. the following notification or a notification that is substantially similar:

          “Dealer firm remuneration has been added to the price of this security (in the case of a purchase) or deducted from the price of this security (in the case of a sale).”,

      14. and

      15. in the case of transactions involving securities of the Dealer Member or a related issuer of the Dealer Member, or in the course of a distribution to the public, securities of a connected issuer of the Dealer Member, such trade confirmation shall state that the securities are securities of the Dealer Member, a related issuer of the Dealer Member or a connected issuer of the Dealer Member, as the case may be, 

      16. and

      17. in the case of a Dealer Member controlled by or affiliated with a financial institution, the relationship between the Dealer Member and the financial institution shall be disclosed on each trade confirmation issued in connection with a trade in securities of a mutual fund sponsored by the financial institution or a corporation controlled by or affiliated with the financial institution, except where the names of the Dealer Member and the mutual fund are sufficiently similar to indicate that they are controlled by or affiliated with the same financial institution,

      18. and

      19. notwithstanding the provisions of this section 3816, a Dealer Member shall not be required to provide a confirmation to a client in respect of a trade: 

        1. in a managed account, provided that:

          1. prior to the trade, the client has consented in writing to waive the trade confirmation requirement,

          2. the client may terminate a waiver by notice in writing.  The termination notice shall be effective upon receipt of the written notice by the Dealer Member, for trades following the date of receipt, 

          3. the provision of a confirmation is not required under any securities laws of the jurisdiction in which the client resides or the Dealer Member has obtained an exemption from any such applicable laws by the responsible securities regulatory authority, and

          4. where:

            1. a person other than the Dealer Member manages the account

              1. a trade confirmation has been sent to the manager of the account, and

              2. the Dealer Member complies with section 3808, or

            2. the Dealer Member manages the account:

              1. the account is not charged any commissions or fees based on the volume or value of transactions in the account,

              2. the Dealer Member sends to the client a monthly statement that is in compliance with section 3808 and contains all of the information required to be contained in a confirmation under this section 3816 except: 

                1. the day and the marketplace or marketplaces upon which the trade took place, or marketplace disclosure language acceptable to IIROC,

                2. the fee or other charge, if any, levied by any securities regulatory authority in connection with the trade, 

                3. the name of the salesperson, if any, in the transaction,

                4. the name of the dealer, if any, used by the Dealer Member as its agent to effect the trade, and

                5. must maintain and make available to the client or IIROC, upon request, the name of the person or company from or to or through whom the security was bought or sold, if acting as an agent in a trade upon an equity marketplace, 

              3. the Dealer Member maintains the information not required to be in the monthly statement pursuant to sub-paragraph 3816(2)(x)(a)(IV)(B)(ii) and discloses to the client on the monthly statement that such information will be provided to the client on request

        2. In delivery against payment and receipt against payment  trade accounts, provided that:

          1. the trade is either subject to or matched in accordance with broker-to-broker or institutional trade matching requirements under IIROC requirements or securities laws,

          2. the Dealer Member maintains an electronic audit trail of the trade under IIROC requirements or securities laws,

          3. prior to the trade, the client has agreed in writing to waive receipt of trade confirmations from the Dealer Member,

          4. the client is either:

            1. another Dealer Member who is reporting or affirming trade details through an acceptable trade matching utility in accordance with sections 4751, 4753, 4754, 4755 and 4756, or

            2. an institutional client who is matching delivery against payment/ receipt against payment account trades (either directly or through a custodian) in accordance with National Instrument 24-101,

          5. the Dealer Member and the client have real-time access to, and can download into their own system from the acceptable trade matching utility’s or the matching service utility’s system, trade details that are similar to the prescribed information under this section 3816, and

          6. the Dealer Member has not filed a report as required under section 4756 informing IIROC that it has not met the quarterly compliant trade percentage or has not filed a trade matching exception report as required under securities laws relevant to the trade, for a minimum of three consecutive quarters.

      20. A client may terminate their trade confirmation waiver, referred to in sub-clause 3816(2)(x)(b), by providing a written notice confirming this fact to the Dealer Member. The termination notice takes effect upon the Dealer Member’s receipt of the notice.

    There is no history log for this rule.

    There is no history log for this rule.