Series 10 Exam Question 5: Answer and Explanation

Question: 5

A broker dealer that does not carry customer accounts is required to do all of the following, EXCEPT:

• A. Clear all trades on an omnibus basis.
• B. Forward all securities to the carrying firm.
• C. Forward all checks to the carrying firm.
• D. In the case of market making, have the carrying firm stand behind all trades.

Correct Answer: A

Explanation:

Firms that do not self-clear are required to do all of the choices listed except clear on an omnibus basis.