Question

When a selling BD has failed to make proper delivery to a buying BD, what will the buying BD do?

1) Purchase the securities in the Open market and charge the selling BD of differences
2) File a complaint with the regulatory authority
3) Cancel the transaction and request a refund
4) Take legal action against the selling BD

Answer 1

When a selling BD fails to make proper delivery to a buying BD, the buying BD has several options for recourse, including purchasing the securities in the open market, filing a complaint, canceling the transaction, or taking legal action.

Step-by-step explanation:

When a selling BD fails to make proper delivery to a buying BD, the buying BD has several options for recourse:

1. Purchase the securities in the open market and charge the selling BD for the price difference.
2. File a complaint with the regulatory authority to report the failure of the selling BD.
3. Cancel the transaction and request a refund from the selling BD.
4. Take legal action against the selling BD for failing to deliver the securities.

The buying BD can choose the option that best suits their situation and seek a resolution accordingly.