Trade Errors, Cancels, Rebills, and As-Of Pricing
Chapters in this video
What this video covers
- Why identifying who caused the mistake comes first, and how the party at fault absorbs any market-move loss
- How a cancel voids the original trade and a rebill books the replacement trade to the correct account or security
- Why every cancel and rebill requires qualified-principal approval under the Customer Account Records rule before reaching the destination account
- How a firm error account holds interim positions and tracks the firm's overall profit and loss from trade errors
- How firm-caused mutual fund errors receive the originally intended NAV through as-of pricing, while customer-caused errors receive the next NAV under forward pricing
- Why backdating a customer-caused correction creates late-trading problems and is not a valid workaround
- How variable annuity and variable life insurance corrections follow carrier procedures in the prospectus, including the seven-business-day supervisory review rule
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This video's complete written lesson is free to read in the CertFuel app, no signup wall. The complete Series 6 course also includes adaptive practice questions and spaced-repetition flashcards.