Timeline for Posting Entries

The daily blotter captures original activity as it occurs. Periodic financial entries then use ledger balances to support the firm's continuing financial picture.

Daily Original-Entry Records

• Current books and records: Required records relating to the broker-dealer's business must be made and kept current.
• Daily original-entry record: The blotter contains an itemized daily record of purchases and sales, securities movements, cash movements, and other debits and credits.
• Transaction detail: Each original entry identifies:
  • The account
  • The security
  • The quantity
  • The price, when applicable
  • The trade date
  • The person or designation from whom securities were received or to whom they were delivered

Timing chain: transaction activity -> itemized daily blotter entry -> current underlying record.

Exam Tip: Gotchas

• “Daily” describes the blotter's original-entry function. Do not substitute a later financial summary for the required itemized transaction record.

Monthly Financial Entries

• Trial balance: Proof of the money balances of ledger accounts, prepared currently at least once a month.
• Capital computation: The required aggregate-indebtedness and net-capital computation, prepared currently at least once a month.
• Financial records and reporting: These operate within the broker-dealer books-and-records framework alongside the transaction records.

Exam Tip: Gotchas

• Do not confuse a daily blotter with a monthly trial balance. The blotter records original transactions; the trial balance supports periodic proof of ledger money balances.