Trading Activity Functions Clause Samples
The Trading Activity Functions clause defines the specific roles, responsibilities, and processes related to executing, monitoring, and managing trading activities within an agreement. It typically outlines which party is authorized to initiate trades, how trades are to be recorded and reported, and any compliance or oversight mechanisms that must be followed. By clearly delineating these functions, the clause ensures operational clarity, reduces the risk of unauthorized transactions, and helps maintain regulatory compliance in trading operations.
Trading Activity Functions. Broker shall perform the following functions as introducing firm for its prime brokerage customers:
a. Report all trading activity for the accounts of Broker’s prime brokerage customers (whether executing with Pershing or away) to Pershing via iPartner, NetExchange Advisor (or other agreed upon method) on trade date by a time to be determined by Pershing and Broker from time to time.
b. Assure that access to iPartner is limited to authorized persons only.
c. Accept, via electronic mail (or telephone) on T+1, information regarding all trade breaks and respond to the Investment Management Services (“PIMS”) group of Pershing regarding resolution of such trade breaks by 12:00 noon (NYC time) on T+1.
d. Obtain pre-approval from Pershing for any short sales directed by Broker’s prime brokerage customers.
e. Provide all information to Pershing related to the eligibility of any of Broker’s customers to receive or to continue to receive prime brokerage services.
Trading Activity Functions. Introducing Firm shall perform the following functions as introducing firm for its prime brokerage customers:
a. Report all trading activity for the accounts of Introducing Firm’s prime brokerage customers (whether executing with Clearing Agent or away) to Clearing Agent via such method as may agreed upon by Clearing Agent and Introducing Firm) on trade date by a time to be determined by Clearing Agent and Introducing Firm from time to time.
b. Accept, via electronic mail (or telephone) on T+1, information regarding all trade breaks and respond to Clearing Agent regarding resolution of such trade breaks by 12:00 noon (NYC time) on T+1.
c. Obtain pre-approval from Clearing Agent for any short sales directed by Introducing Firm’s prime brokerage customers.
d. Provide all information to Clearing Agent related to the eligibility of any of Introducing Firm’s customers to receive or to continue to receive prime brokerage services.
Trading Activity Functions. Introducing Firm shall perform the following functions as introducing firm for its prime brokerage customers:
26.4.1. The Introducing Firm shall notify the Clearing Firm, but in no event later than 5:00 p.m. New York time on trade date, in a mutually acceptable fashion, of only such trades executed by it (either directly or through the Clearing Firm) in sufficient detail for the Clearing Firm to be able to report and transfer any trade executed by the Introducing Firm on behalf of a Prime Brokerage Account to the relevant Prime Broker. Introducing Firm shall make and maintain records of such trades as required by SEC and SRO rules, including memoranda of orders.
26.4.2. Accept, in a mutually acceptable manner on trade date plus one (“T+1”), information regarding all trade breaks and respond to Clearing Broker regarding resolution of such trade breaks by 12:00 noon (NY time) on T+1.
26.4.3. Perform and record a “locate” for any short sales directed by Introducing Firm’s prime brokerage customers to Introducing Firm for execution.
26.4.4. Provide all information to Clearing Firm related to the eligibility of any of Introducing Firm’s customers to receive or to continue to receive prime brokerage services.