Close-Out: Buy-Ins, Sell-Outs, COD, and Rights/Warrants

What this video covers

• Who initiates a buy-in versus a sell-out, and which party bears the risk and cost of each close-out
• The strict buy-in notice deadline: 12:00 p.m. Eastern Time at least two business days before execution, and why same-day notice is invalid
• Why sell-outs require zero advance notice, and the 6:00 p.m. Eastern Time same-day notification requirement
• The three reclamation windows: 15 days for minor or currency defects, 45 days for foreign securities, and 30 months from settlement for lost, stolen, or confiscated securities
• The expiring rights and warrants carve-out that eliminates the standard two-day buy-in notice period
• Pre-acceptance requirements for COD and DVP orders, and why trade confirmations must be delivered by end of trade date
• How the Uniform Reclamation Form protects the returning party, and what happens when it is missing