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Article 42
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A securities firm accepting brokerage orders to trade securities shall prepare a trade report for signing/sealing by the customer after the customer executes a trade. However, if the securities firm is concurrently operated by a financial institution and the delivery of funds for trading the securities can be verified through the separate deposit account of the customer, preparation of a trade report is not required.<br/>If the trade report referred to in the preceding paragraph is to be confirmed by an agent engaged by the customer to trade securities on its behalf, a power of attorney issued by the customer shall be provided.<br/>If the funds and securities of the customers of a securities firm accepting brokerage orders to trade securities are settled through book-entry transfer, or trade confirmation has been carried out and records have been kept, the signing/sealing referred to in paragraph 1 above is not required to be done, and Article 27, paragraph 1 of the Regulations Governing Book-Entry Operations for Centrally Deposited Securities regarding passbook entries shall not apply.
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