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Official Practice ProblemFINRA Series 7 Blueprint: Function 4
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Question #1100Function 4Fundamental

SEC Rule 10b-10: Trade Confirmation Timing and Required Disclosures

Under SEC Rule 10b-10, by when must a broker-dealer deliver a written trade confirmation to a customer?

Correct Choice: A

SEC Rule 10b-10 requires that a trade confirmation must be given or sent to the customer AT OR BEFORE completion of the transaction (which is generally the settlement date).

Complete Analysis & Legal Rationale

The confirmation must disclose trade date, settlement date, capacity (agent vs principal), markup/markdown or commission, price, and yield.

Distractor Autopsy (Why Other Options Are Traps)

FINRA exam writers design incorrect distractors using specific calculation mistakes and regulatory misconceptions. Review why each option succeeds or fails:

Choice ACorrect
Accurate SEC Rule 10b-10

At or before completion of transaction (settlement date).

Choice BIncorrect
Timeframe Error

30 days is too late; confirmation must precede or accompany settlement.

Choice CIncorrect
Account Statement Confusion

Quarterly statements report account positions, not trade confirmations.

Choice DIncorrect
Mandatory Delivery Fallacy

Confirmations are mandatory for every trade; customer request is not required.

Regulatory Authority & Citations:
SECSEC Rule 10b-10Confirmation of Transactions

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