TRADE ALLOCATIONS ARE MADE ACCORDING TO A NORMAL
DISTRIBUTION WITH THE MEAN EQUAL TO THE
PROPORTION OF THE MARKET SHARE AND THE
STANDARD DEVIATION EQUAL TO

.5000

OF THE MARKET SHARE

BREAKDOWN OF INSTITUTIONAL SALES AND BUYS INTO LOT SIZES
DIST GAMMA
MEAN = 10.000 STD = 5.303

A trading activity report (Fig. 20) is generated for each reporting day. The report interval input determines this day for several outputs. The results of trades occurring 5 days prior to the reporting day are summarized. Buys and sales for each firm are listed by account: cash, margin, institutional, and principal. In all the output reports, all figures are in 100 share units.

Firm trading information is summarized in Fig. 21 for all receipts and deliveries that occurred in the last reporting interval for each firm and the industry. In addition to the printed information, this report is useful for checking inventory positions between report intervals by firm or industry-wide: (total receipts) - (total deliveries) + (previous inventory) = (current inventory).

The transfer accounts recording changes during the report interval include

1. Change title--shares sent to transfer after being in the overnight box a specified time for change of title to the firm's

own name.

2. Wrong denomination--shares sent to transfer because a certificate denomination was too large for attempted delivery.

Deliveries to brokers during the report interval:

1.

2.

Current balance-orders--shares delivered as balance orders
on the settlement date.

Past balance-orders--shares delivered as balance orders later
than original settlement date.

3.

Lender stock loans--shares lent as stock loans.

4. Repay stock loans--stock loans falling due and promptly repaid during the last report interval.

5.

Late repay stock loan--stock loans repaid after their due date.

-63

Deliveries to cash customers during the report interval:

1.

2.

Current--shares sent to transfer for change to customer name
and forwarded to customer on settlement date.

Past--shares sent late to transfer for change of title to
customer's name.

Deliveries to institutions during the report interval:

1.

2.

3.

Current--shares delivered to institutions and accepted on
settlement date.

Past--shares delivered to institutions after settlement date
and accepted.

Attempted but DK--shares delivered to institutions but not
accepted.

DK resolved--shares in DK status delivered and accepted. Note
that this figure is enclosed in parentheses to indicate that
shares are subtracted from past institutional deliveries, i.e.,
they were previously recorded as deliveries and DK'd, and at
that time inventory was reduced accordingly.

The accounts on the receipts side of the trading information report are basically contra accounts to those on the delivery side. The account descriptions closely resemble those of the delivery accounts. Note that total deliveries and receipts between brokers are unequal. This results from a lag in receipt of certain balance orders sent through the mail for houses located away from New York.

Industry receipts from and deliveries to transfer do not match because some shares may have been sent out to transfer in a previous report interval while others may have been sent to transfer in the last interval but not received until some subsequent interval. Industry receipts from and deliveries to customers are unequal because customers are outside the brokerage system. Receipts and deliveries of stock loans balance for the industry.

Firm Status Report

The firm status report (Fig. 22) resembles a typical balance sheet showing the firm's security position at a point in time. On-hand inventory, due-ins, and due-outs are included.

Business between brokers is a closed system because total due-in balance orders equal total due-out balance orders, and total due-in

stock loans equal total due-out stock loans. The introduction of customers, either cash or institutional, however, destroys the closed character of the system and it should not be expected that total dueins will equal total due-outs.

Inventory on hand includes

1. House name--shares in firm's vault that have title in firm's name.

2.

3.

Nonhouse name--shares in firm's vault that have title in stree

name.

Total--total shares in firm's possession (sum of above two
items).

Due-ins from mail are separated from other types of due-ins to emphasize certain balance orders not yet added to a firm's inventory. This situation is the result of a lag in mail delivery for balance orders delivered by one firm (its inventory accordingly reduced) but not yet received by the other firm (and added to its inventory). There are other situations where stocks are treated similarly, i.e., the inventory of the broker is reduced without increasing the inventory of the contra broker. These situations occur when delivery orders are sidetracked due to a DK or a denomination problem. The mail accounts

include

1.

Current balance orders--shares sent by contra firm on settlement date.