Syndicate
The Stock Exchange Contracting Mechanism
How to execute an order
When one gets in touch with its own stock exchange agency to buy or sell some quoted securities, your account executive or agent incorporates this order to a form (office ticket) that will be introduced to the informative system by the orders department. Immediately, this order is send by telephone, Teletype or computer to the floor of the Stock Exchange Market, where the employees transfer part of this information to floor tickets.
When one gets in touch with its own stock exchange agency to buy or sell some quoted securities, your account executive or agent incorporates this order to a form (office ticket) that will be introduced to the informative system by the orders department. Immediately, this order is send by telephone, Teletype or computer to the floor of the Stock Exchange Market, where the employees transfer part of this information to floor tickets.
Federal Laws and Stock exchange Market norms determine which is the information that must be incorporated to both of the forms.
Only members of the stock exchange market are authorized to execute orders, for which the employees of the market have to get in touch with an independent agent (commission house broker or two-dollar broker), who is really who executes the orders.
When the execution is completed, information of the operation is sent to the orders department of the agency, which originated this order. From there on, the pertinent information is transferred to the purchasing and sales department for the order to be registered, to calculate the total monetary sum, to compare the order with the stock exchange agent of the other part and to confirm the operation to the client. Also, the operation is notified to the Treasury, accounting and registry of securities departments.
Although papers are still being used, almost all the accounting, commercial and legal works of the operations are done through a computer (by general rule, the agent that is on the floor will not confirm to you the execution of the order; it will be the account executive who will call you by telephone to notify that the operation has taken place and at what price where the securities were bought or sold. If you have not received any notice by the end of working hours, call your account executive for him to confirm orally the operation).
A few days after the execution of the order, you will receive by mail the written confirmation of the operation. This confirmation note usually contains the following information:
- date of the deal
- date of liquidation
- amount
- price
- place of execution
- execution method
- name and address of the client
- sum of the commission
- pertinent rates and takes
- necessary money (if it proceeds)