Who must mark orders as "Pro or Non-Client or Employee"?

• A. Any individual investor
• B. Licensed individuals placing orders for their own accounts
• C. Institutional clients only
• D. Retail investors

Answer: (B)

The requirement to mark orders as "Pro or Non-Client or Employee" applies specifically to licensed individuals placing orders for their own accounts. This distinction is crucial in maintaining transparency and compliance within the financial markets. Licensed individuals, such as brokers or dealers, are subject to different regulations than regular individual investors, and this marking helps broker-dealers identify the nature of the transaction and the professional status of the individual involved.

The marking ensures that the appropriate rules and protections, such as best execution standards and suitability assessments, are applied correctly to the trades made by professionals. Unlike individual investors who do not have the same regulatory obligations, licensed individuals must adhere to stricter guidelines to prevent conflicts of interest and ensure fair treatment of clients.

By marking orders accurately, licensed individuals also help facilitate more accurate reporting and regulatory oversight, ensuring that the financial markets function smoothly and in compliance with the law.