4179. Review the Dealer Member’s position balancing and account reconciliations

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    1. The Dealer Member's auditor must review the Dealer Member’s:

      1. balancing of all security and derivative positions, 

      2. reconciliation of all broker, dealer, clearing account positions, and non-certificated instrument positions the Dealer Member holds (in its inventory and for clients) with the counterparty’s corresponding statements,

        and

      3. reconciliation to ensure that all necessary adjustments identified during the preparation have been made.

    2. If a position or account is not in balance according to the records (after adjusting to the physical count):

      1. the Dealer Member's auditor must find out whether the Dealer Member has adequately provided for any potential loss, and

      2. the Dealer Member must make that provision according to the Notes and Instructions for unresolved differences in Statement B of Form 1.

    There is no history log for this rule.

    There is no history log for this rule.