Order Tickets and Required Information
Every customer order must be properly documented before it can be executed. This section covers what goes on the order ticket and why accurate record-keeping matters.
Information Required on an Order Ticket
Every customer order must be documented on an order ticket at the time the order is received. Required elements include:
| Element | Description |
|---|---|
| Security symbol/description | Identifies the security being traded |
| Account number | Customer account identifier |
| Buy or sell | Direction of the order |
| Number of shares or units | Quantity |
| Price instructions | Market, limit price, stop price, or other modifier |
| Order type/qualifications | All-or-None (AON), Fill-or-Kill (FOK), Immediate-or-Cancel (IOC), Good-Till-Canceled (GTC), day, not held, etc. |
| Time of order receipt | When the order was received from the customer |
| Time of execution | When the order was filled |
| Execution price | Price at which the order was executed |
| Registered representative | Identity of the rep who entered the order |
| Solicited or unsolicited | Whether the trade was recommended by the firm or initiated by the customer |
| Discretionary indicator | Whether the rep exercised discretion |
| Short sale indicator | Whether the sale is a short sale (required by Regulation SHO order-marking rules) |
Time-Stamping Requirements
- Order tickets must be time-stamped at two points:
- Time of receipt - when the order was received from the customer
- Time of execution - when the order was filled
- This creates an audit trail for regulatory review and best execution analysis
- Ensures compliance with order handling rules and prevents front-running (trading ahead of a customer order)
Exam Tip: Gotchas
- Order tickets require two time stamps: time of receipt AND time of execution. The exam may present options with only one; both are required.
- The short sale indicator is required by Regulation SHO (Short Sale Regulation). This is a frequently tested detail that students overlook.
The Solicited vs. Unsolicited Distinction
This designation has real regulatory consequences:
- Solicited (recommended by the rep): The firm has a full suitability obligation under Reg BI (Regulation Best Interest)
- Unsolicited (customer-initiated): The obligation is reduced but not eliminated - the firm still cannot execute clearly unsuitable trades
Exam Tip: Gotchas
- The solicited vs. unsolicited designation is a required order ticket element. If a trade was recommended by the rep, the firm has heightened suitability obligations under Reg BI.
- Unsolicited does not mean "anything goes." The firm still cannot execute clearly unsuitable trades, even when the customer initiated the order.