FINRA, SEC and MSRB1 rules effective May 14, 2018 require disclosure of additional items on client confirmation statements for Corporate, Agency, and Municipal bond trades executed by Janney on a principal basis. Client confirmations (“confirms”) will include “MARKUP/MARKDOWN” expressed as both a dollar amount and as a percentage of the prevailing market price. 

Prevailing Market Price is a formula established by the U.S. Securities and Exchange Commission (SEC) and is calculated using a priority order of applicability:

  1. Janney’s contemporaneous cost,
  2. Current market quotes in the specific bond,
  3. Trades in similar bonds
  4. Pricing evaluation via an analytics engine

In addition, confirms for all Corporate, Agency, and Municipal trades, whether as principal or as agent, will include the time of trade execution and a link to a security-specific website with trade history and certain information on the traded security.

If you have any additional questions regarding this change, or would like more information, please contact your Janney Financial Advisor.

For more information on the rule, visit FiNRA's Fixed Income Confirmation Disclosure: Frequently Asked Questions (FAQ).

(1) Financial Industry Regulatory Authority (FINRA); Securities and Exchange Commission (SEC); Municipal Securities Rulemaking Board (MSRB)

To learn about the professional background, business practices, and conduct of FINRA member firms or their financial professionals, visit FINRA’s BrokerCheck website: http://brokercheck.finra.org/