Form X-17a-5 - Schedule I - Focus Report (Page 3 of 7) in pdf

16a & b – These items are to be completed only by carrying or clearing firms required to file Part II of Form X-17A-

5. Report the total number of public customer transactions executed on a national securities exchange. If basis

of count is an actual count, place a “1” in “actual” box. If statistical method is used, place a “1” in “estimate” box.

A transaction is defined as an executed trade which results in a customer trade confirmation. Therefore, the count

of transactions should be taken from the customer side and should not include confirmation corrections. For count

purposes, several executions at the same price, which result in one confirmation, should be counted as one

transaction.

For investment company securities transactions in which cash or securities are handled by respondent (exclude

transactions by others, such as voluntary or period payment plans), a count of trade confirmations should be used

to obtain the transaction count. The street and customer side are counted as one transaction. For underwriting

transactions, the takedown should be counted as one transaction and the ultimate sale to customers should be

counted based on customers’ confirmations (e.g., an underwriting of 2,000 shares is ultimately sold to five

customers-takedown of 2,000 shares counts as one trade and the sale to five customers counts as five trades.)

For commodity transactions, purchase or sale of contracts are to be counted as one transaction and each

subsequent closeout is to be counted as one transaction [e.g., five contracts of a commodity purchased in one

trade (same price and on the same day) is one transaction, subsequent sale is five separate contracts (different

day or price for each is five additional transactions)]. Do not include clearing house side in count.

For option transactions, the purchase of an option contract represents a transaction.

For commercial paper transactions, both the purchase and sale should be counted as separate transactions.

Count may be taken from confirmation or acknowledgement tickets. Items which are not strictly principal trades,

such as private placement sales should be included. Repurchase agreement sales and returns should also be

included in count.

Corrections shall be excluded from the transaction count. However, an error transaction, that is a transaction where

the wrong security was purchased and the correct security must later be purchased, is not considered a correction.

For error transactions, the original transaction and the buy and sell from the error account are to be counted as

separate transactions.

Firms carrying public customer accounts for other broker-dealers on a fully disclosed basis are to include

transactions from those accounts in their number count. Firms introducing accounts on a fully disclosed basis will

report “zero” for these items.

Although an actual count of transaction is preferred, an estimated count may be generated using the following

methodology:

1. Select specific days for which transactions will be counted

(a) Randomly selecting one of the first 15 working days in the year as the starting date,

(b) Selecting each 8

working date thereafter throughout the entire year,

number have been selected, randomly discard dates throughout the year until only 30 remain).

19a, b & c- Report whether respondent directly or indirectly controls, is controlled by, or under common control

with a U.S. bank. If the answer is “yes” provide the name of the affiliated bank and/or bank holding company, and

describe the type of institution. The term “bank” is defined in Section 3(a)(6) of the securities Exchange Act of 1934.

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