General Securities Sales Supervisor (Series10) Practice Exam

Under MSRB rules, which of the following must be included in an order ticket for an agency transaction?

1. Time of order receipt

2. Time of order entry

3. Time of order execution

4. Time of order cancellation

The correct answer is: Time of order entry

The requirement to include the time of order entry on an order ticket for an agency transaction is rooted in the Municipal Securities Rulemaking Board (MSRB) regulations aimed at enhancing transparency and accountability in securities transactions. The time of order entry is critical as it establishes the moment the order is placed into the market, which is essential for compliance with various regulatory requirements, including order priority, trading practices, and the accurate reporting of transaction times. Including the time of order entry ensures that there is a clear record of when the transaction was initiated, which is vital for both regulatory oversight and dispute resolution. It allows for the assessment of the execution quality and helps in tracking the order's lifecycle from entry to execution. This is particularly important in agency transactions where the broker-dealer acts on behalf of a client rather than for its own account. The other timing elements—time of order receipt, time of order execution, and time of order cancellation—while important in other contexts, do not specifically meet the requirement of the MSRB rules for the order ticket in agency transactions. They have different implications regarding the processing and execution of the trade but are not mandated to be recorded on the order ticket itself according to the MSRB requirements.