STEPHEN H. GLAD Consultant to the Securities Industry and Financial Institutions

UNDERSTANDING THE SECURITIES INDUSTRY AND SECURITIES SETTLEMENT AND CLEARANCE**

A three day course which includes sections on

the process of opening a brokerage account, requirement to exercise "due diligence", the "know your customer" concept, and suitability;

anti-money laundering provisions of the USA Patriot Act as they affect brokers and dealers in securities including the requirements for broker-dealers to have in place a customer identification program;

the transaction cycle including types of orders, new Regulation SHO regarding short sales, how orders are entered and executed on the floor of the stock exchange or in NASDAQ, the role of the specialist and floor broker, what occurs in the "trading crowd", the electronic order routing system of "SuperDOT", NYSE "Hybrid Market", and NASDAQ "Super Montage" and "Total View";

what happens after the trade is executed including the trade comparison process, the requirements of SEC Rule 10b-10 and MSRB Rule G-15 to furnish confirmations, and trade settlement through the continuous net settlement system of National Securities Clearing Corporation ("regular way" and "supplemental contracts", T + 2 and T + 3 processing, the "night cycle" and "day cycle", etc.);

cashiering functions including receive and deliver, transfer, requirements of SEC Rule 17f-1 for lost, stolen, and counterfeit securities, accounting for securities transactions including journal entries and the stock record, the requirements to reduce fully paid and excess margin securities to possession or control, dividend and interest accounting and processing; non-clearing/clearing firms, types of clearing arrangements, and prime brokerage;

margin regulations, including Regulation T (the cash account, margin account, and special memorandum account {SMA}), maintenance margin requirements (Rule 431 of the New York Stock Exchange),day trader margin regulations and an illustration of how Regulation T, maintenance margin, and "house" requirements interact with each other;

key industry regulations, including Rule 15c3-3 (possession or control and customer reserve formula), Rule 15c3-1 (net capital), 17a-3 and 17a-4 (recordkeeping), and 17a-5 (financial reporting, FOCUS Report and audits).

Designed for internal auditors, public accountants, accounting, operations and compliance personnel. Extensive use of examples and illustrations to explain products, concepts, and rules. Frequent discussion of risk, internal controls, auditing procedures, and actual instances of abuse and fraud. Participants should have a basic understanding of accounting but limited knowledge of the securities industry.

All training programs and seminars can be customized to meet the specific goals of your organization. Introduction to the Uniform Net Capital Rule (Rule 15c3-1) Introduction to Possession or Control and the Customer Reserve Formula (Rule 15c3-3) Understanding Margin Requirements Other programs are available or can be designed to meet the specific requirements of your organization and employees. To learn more about training and educational seminars Home    Training and Education    Industry Regulations    Regulatory Agencies Contents last revised on 11/28/08 (c) Stephen H. Glad 2008