Net Trading

A net transaction is a principal transaction whereby Weeden, after having received an order to buy (sell) an equity security, purchases (sells) the security at one price and then sells to (buys from) you at a different price. The price difference represents the compensation that Weeden receives for facilitating your order. If you do not wish to have your orders handled on a net basis, please inform your Weeden representative or the Chief Compliance Officer.

We understand that you are in institutional account as defined in FINRA Rule 4512(c). FINRA Rule 4512(c) defines an institutional account as (i) a bank, savings and loan association, insurance company, or registered investment company; (ii) an investment adviser registered either with the SEC under Section 203 of the Investment Advisers Act or with a state securities commission (or any agency or office performing like functions); or (iii) any other person (whether a natural person, corporation, partnership, trust or otherwise) with total assets of at least $50 million. In the event that you are not now, or ever cease to be, an “institutional account” as defined above, you must notify us in writing immediately.

Print Friendly, PDF & Email