Final answer:
Reclamation procedures under FINRA's Uniform Practice Code apply in situations where a member firm has mistakenly delivered securities and needs to reclaim them.
Step-by-step explanation:
Reclamation procedures under FINRA's Uniform Practice Code apply in situations where a member firm has mistakenly delivered securities to another party and needs to reclaim them. This typically occurs when there is an error in the delivery or settlement process, such as delivering securities to the wrong customer or delivering more securities than were intended. The reclamation procedures provide a mechanism for the member firm to request the return of the securities from the recipient.
For example, if a broker mistakenly delivers 100 shares of stock to a customer who only purchased 50 shares, the broker can initiate a reclamation procedure to request the return of the extra 50 shares. The recipient of the extra shares would be required to return them to the broker.
Overall, reclamation procedures help ensure the proper delivery and settlement of securities transactions, correcting any errors or discrepancies that may occur in the process.