Disclosing What a Transaction Really Costs

What this video covers

• The four simultaneous triggers required for mark-up or mark-down disclosure: principal capacity, corporate or agency debt, non-institutional customer, and same-day offsetting trade of equal or greater size
• Why an agency trade fails the first trigger and eliminates the dollar-and-percentage disclosure requirement entirely
• How an affiliate relationship in the offsetting trade affects disclosure, and when a firm must look through to the affiliate's own third-party trade
• The two exceptions that remove the mark-up disclosure obligation even when all four triggers exist: functionally separate unaware trading desks, and fixed-price offerings sold on acquisition day
• The broader confirmation rules that apply to all corporate and agency debt trades with non-institutional customers: Financial Industry Regulatory Authority (FINRA) trade-data-page hyperlink, brief description, and execution time to the exact second
• Why the broader debt confirmation rules travel only with security type and customer type, ignoring the same-day offsetting trade requirement entirely
• How the test writers bait candidates into applying the narrow dollar-and-percentage rule to institutional clients, universal transactions, or situations where only the broader rules apply