Question

For unrecognized trades (DKs - Don't Know), who needs to notify the confirming party?

1) The party receiving the confirmation
2) The party initiating the trade
3) Both parties
4) None of the above

Answer 1

For unrecognized trades (DKs), the party receiving the confirmation is typically responsible for notifying the confirming party. This step is important for swiftly resolving discrepancies in trade records.

Step-by-step explanation:

For unrecognized trades, also known as Don't Knows (DKs), the responsibility for notification typically falls on the party receiving the confirmation. This party is expected to notify the confirming party that the trade is unrecognized. It is a critical step to resolve the situation swiftly and ensure that the trade records are correct on both sides. In some cases, both parties may communicate to resolve the discrepancy, but the initial responsibility to notify usually lies with the party receiving the confirmation.