Transaction Processing and Settlement: Rapid Fire

What this video covers

• Why order tickets are retained for 3 years (first 2 easily accessible), and why the 6-year distractor refers to customer account records, not tickets
• How the BLISS rule (Buy Limit and Sell Stop) reduces open order prices on cash dividends, while sell limits and buy stops stay put
• Why reverse splits cancel open orders entirely instead of adjusting them, forcing the rep to re-enter the order
• What T+1 standard settlement means for equities, corporate bonds, municipal bonds, Exchange-Traded Funds (ETFs), and mutual funds, and why T+2 is an outdated trap
• How Regulation T gives cash-account customers until T+3 to pay, and what happens when freeriding triggers a 90-calendar-day freeze (pay in full on trade date)
• When firm-caused mutual fund errors get the originally intended Net Asset Value (NAV) under as-of processing, versus customer-caused errors repriced at the next NAV
• The critical distinction between a wash trade (illegal manipulation, no change in beneficial ownership) and a wash sale (tax rule, 61-day window)
• Why Fund/SERV handles mutual fund trading while Networking handles reconciliation and dividends, and where the Uniform Practice Code (UPC) applies