This version is a substantial expansion of earlier versions (it is over twice as long as the 1992 edition, for instance). Not only is it current with the more recent accounting and regulatory changes, but the background information on the industry, securities processing, and the regulatory requirements has been extensively expanded and enhanced.

We do hope that the next edition includes an index.

It is a little used and greatly under appreciated resource. Indispensable.

Whereas the FASB makes its publications available on-line as well as in hard-copy, the AICPA does not.

Most of their publications are available on their website. See [FASBWeb] on this page for additional information.

[FASBConcepts06]

"FASB Statements of Financial Accounting Concepts", 2006, is a very readable discussion of entity performance at the most fundamental level. Statements 5 and 6 are most relevant to our concerns.

[FASBCurrent06]

"FASB Current Text, vols I and II", 2006, addresses a number of topics at a very detailed level, often beyond the needs of IT. Section F25 addresses valuing securities. I78 discusses inventory and cost. I80 addresses investments in debt and equity securities; D50 addresses derivatives.

The book has some similarities to [AfterTrade86], but also many differences. Weiss' book focuses on all components of the Operations Department, so naturally cannot go into extensive detail on each topic. Simmons, on the other hand, is focused on certain of the processing done there, as indicated in his subtitle. Simmons' discussion of position keeping (both trade date and the stock record) is quite extensive. On the other hand he does not address many of the groups within Ops; he has no discussion of the Margin Department or P&S, for example. For that kind of information go to Weiss.

Simmons' book has one of the few good descriptions of realized P&L. He also addresses international securities, which is a plus.

This is the best reference we know of for the topics we're concerned with on this site. Indispensable. If you only have one resource, this is the one to have. The only question is why no one wrote such a book earlier; it has been greatly needed.

Do take a moment to take a look at the list on the inside front cover of those who have made suggestions, particularly the individual from Montclair, NJ.

See [SecuritiesOps02] for further discussion.

[FASBStmt157]

"FASB Statement of Financial Accounting Standards No. 157: Fair Value Measurements", September, 2006, is the most recent standard on determining fair value of securities. It amends and/or replaces many of the earlier Statements on this topic; see Appendix D. See also FASB: Summary of Statement No. 157.

Interestingly, it disallows the consideration of the size of the position ("blockage") in determining fair value.

[FASBStmt133]

"FASB Statement of Financial Accounting Standards No. 133: Accounting for Derivative Instruments and Hedging Activities", 1998, is similar to Statement 115, but for derivatives.

[FASBStmt115]

"FASB Statement of Financial Accounting Standards No. 115: Accounting for Certain Investments in Debt and Equity Securities", 1993, discusses the different treatments for held-to-maturity securities, trading securities, and available-for-sale securities. It provides a very useful background for the different approaches that were adopted.

[FASBCon6]

"Concepts Statement No. 6: Elements of Financial Statements" is an excellent discussion of reporting, at a fundamental level. It includes the structure of financial statements, the comprehensive income framework, realized and unrealized P&L, and many other important topics. Highly recommended.

[FASBCon5]

"Concepts Statement No. 5: Recognition and Measurement in Financial Statements of Business Enterprises" discusses (among many other topics) marketable securities, realized (and realizable) revenues and gains, and recognition.

[SecExchAct1934]

Securities Exchange Act of 1934 (with updates). This act is a complement to the 1933 act and addresses transactions in ("exchanges of") securities. This act is more relevant to the topics on this site. It is about 4 times the length of the 1933 Act. For a PDF of the entire Act go to SEC 1934 Act.

[SecAct1933]

Securities Act of 1933 (with updates). This act addresses the registration and issuance of securities. For a PDF of the entire Act go to SEC 1933 Act.

The SEC was created under Section 4 of the 1934 Act. The SEC also enforces the 1933 Act, which is why the SEC is the "Securities and Exchange Commission".

Wikipedia has an introduction to the paper, with references and links.