Trading

Overview

If you’re seeing a trade marked as Failed, it can mean one of two things:

1. The order did not execute (it was rejected or canceled before it filled), or
2. The order executed, but later ran into a post‑trade issue during clearing/settlement (or was corrected/reversed).

This article explains the most common reasons and what information to provide if you need help investigating.

1) Orders that fail before execution (not filled)

A. Market hours, halts, or trading restrictions

An order may fail if the market is closed, the symbol is halted, or trading is restricted for that security.

What you might see: “Rejected”, “Not eligible”, “Trading halted”, or similar.
What to do: Confirm trading hours/holiday schedule and try again when the market is open (if appropriate).

B. Order parameters that can’t be accepted

Some orders can fail due to their parameters, such as:

• limit prices far outside the current market
• unsupported order types for the security
• time-in-force rules that conflict with the venue/session

What you might see: “Invalid order”, “Price bands”, “Unsupported order type”.
What to do: Adjust order type/limit price and resubmit.

C. Permissions or account configuration

Your account may not be enabled for a particular product or capability (e.g., options, certain ETFs, complex orders), or the account may be in a restricted state.

What you might see: “Not permitted”, “Account restricted”.
What to do: Contact support so we can confirm eligibility and required agreements.

D. Compliance, verification, or risk checks

Brokerage accounts and trades may be subject to regulatory and risk checks (e.g., identity verification/KYC completion, sanctions screening, internal risk controls).

What you might see: “Pending verification”, “Restricted”, “Review required”.
What to do: Complete any requested verification steps and contact support if the status doesn’t change.

2) Trades that fail after execution (filled, then later marked failed)

E. Clearing/settlement exceptions (post‑trade)

A trade can execute and still encounter issues in post‑trade processing. Examples include:

• counterparty delivery issues
• settlement instruction mismatches
• processing exceptions at a clearing firm or third party
• market holidays or timing cutoffs impacting processing windows

What you might see: “Failed to settle”, “Settlement failed”, “Exception”.
What to do: If the trade is still within the normal settlement window, it may resolve through standard exception handling. If it’s beyond the expected window, contact support with the trade details.

Settlement timing note: Settlement timelines are typically T+1 for many securities, but timing can vary based on market rules, holidays, corporate actions, and exceptions processing.

F. Trade corrections, reversals, or “busts”

In some scenarios a trade may be corrected or reversed after execution due to post‑trade processes (for example, an execution error corrected by an exchange/venue or clearing workflow).

What you might see: “Corrected”, “Reversed”, “Canceled after execution”, “Busted”.
What to do: Contact support so we can confirm the final disposition and how it affects cash and positions.

G. Corporate actions or symbol changes

Corporate actions (splits, mergers, symbol changes, spinoffs) can affect how positions and trades are processed and displayed, especially around key effective dates.

What you might see: Temporary position changes, symbol changes, delayed updates.
What to do: Check corporate action notices and allow extra time for processing; contact support if values or positions look inconsistent after the action processing window.

H. Funding or cash availability issues (buy-side)

For buy orders, trades may fail or be reversed if sufficient funds aren’t available at the required point in processing—especially if:

• a deposit is reversed/returned (e.g., ACH return)
• funds are on hold
• there’s a mismatch between “available to trade” vs “available to withdraw”
• intraday activity changes buying power unexpectedly

What you might see: “Insufficient funds”, “Deposit reversed”, “Hold applied”.
What to do: Review recent deposits/withdrawals and contact support with any transfer IDs.

I. Transfer or restriction conflicts (ACATS, freezes, liens)

Account transfers (like ACATS) or restrictions can affect trading and settlement, including:

• transfers in flight
• account freezes or legal/administrative holds
• restricted assets requiring special handling

What you might see: “Restricted”, “Transfer pending”, “Not available”.
What to do: Wait for the transfer/restriction to clear, or contact support for next steps.

3) What to send support (so we can investigate quickly)

If you contact us about a failed trade, include (no sensitive personal info):

• Account ID (or last 4 characters if that’s what you have)
• Order ID / Trade ID
• Symbol
• Buy or Sell
• Quantity
• Execution date/time (approx is fine)
• The exact status/error message you see (copy/paste if possible)

4) Disclosures / important notes

• This Help Center is for informational purposes only and does not constitute investment advice, legal advice, tax advice, or an offer to buy or sell securities.
• Trading involves risk, including possible loss of principal.
• Settlement timelines are estimates and may vary due to market conditions, corporate actions, holidays, exceptions processing, or third‑party dependencies.
• Availability of products and services may vary by jurisdiction and account structure.

In one sentence

Custody is how financial assets (like stocks and ETFs) are held and safeguarded on your behalf, even though you don’t have to store share certificates in a safe at home (which, frankly, is for the best).

What “held in custody” means

When you hold securities in a brokerage account, they are typically held in street name. That means:

• The securities are registered in the name of a brokerage/custodian or nominee, and
• You are the beneficial owner, meaning you retain the economic rights (like gains/losses and, where applicable, dividends).

This structure is standard in modern markets and helps support settlement, corporate actions processing, and account servicing.

What zenBank does (behind the scenes)

Depending on your specific program and account structure, zenBank may support:

• Account onboarding (identity verification / KYC)
• Trade processing and post-trade operations
• Settlement processing and exception management
• Custody-related servicing (positions, corporate actions handling, transfers)
• Statements and reporting

If your experience is through a partner app, zenBank may operate “in the rails” while your app provides the user interface.

How asset safety is handled (high level)

Brokerage custody arrangements are designed to protect customers and support orderly processing. Controls often include:

• Operational and technical controls over account access and movement of assets
• Reconciliation processes to ensure records match across systems
• Processes for corporate actions, trade settlement, and transfer workflows

We keep this article high-level because the exact safeguards and entities involved can vary by program.

About SIPC (important, but not magical)

SIPC (Securities Investor Protection Corporation) may provide limited protection in certain brokerage insolvency scenarios (subject to eligibility rules and limits).

• SIPC is not the same as FDIC insurance
• SIPC generally does not protect against market losses
• Coverage depends on the specific account structure and participating entities

Learn more directly from SIPC: https://www.sipc.org

Common questions

Do I still own my investments if they’re in street name?
You typically remain the beneficial owner and retain economic rights, while the securities are registered in a nominee name for operational efficiency.

Can custody impact when I see shares after a trade?
Yes—shares may not be fully settled until the settlement cycle completes (often T+1, market-dependent).

Can you guarantee specific protections?
We can’t make blanket guarantees in a help article because protections depend on account structure, jurisdiction, and the entities involved. If you need program-specific disclosures, refer to your account documentation or contact support.

Disclosures / important notes

The information here is for general informational purposes and may not reflect the precise legal structure of every zenBank-supported program. For program-specific custody and protection details, refer to your official disclosures and account agreements.

Reminder: This Help Center is for informational purposes only and does not constitute investment advice, legal advice, tax advice, or an offer to buy or sell securities. Trading involves risk, including possible loss of principal.

Overview

ACATS (the Automated Customer Account Transfer Service) is a standard way to transfer eligible securities accounts between broker-dealers. This article explains what to expect when you transfer assets into or out of a zenBank-supported account.

Typical timelines (what “normal” looks like)

Timelines vary by firm and account complexity, but here are common ranges:

• Standard ACATS transfer: typically 5–8 business days
• Complex transfers (options, restricted securities, residual sweeps, margin, unsettled trades): may take longer
• Residual sweeps: some assets (like dividends or late settlements) can arrive after the main transfer completes

Note: Transfers do not move in real time. If you’re watching the account like a hawk (we get it), you may see assets appear in batches.

What can transfer (and what might not)

Usually eligible:

• Most listed equities and ETFs
• Many mutual funds (depends on receiving firm support)
• Cash (depending on transfer type)

May be ineligible or require special handling:

• Fractional shares (often liquidated by the delivering firm)
• Certain mutual funds not supported by the receiving firm
• Restricted/controlled securities
• Some options positions (depending on account permissions/agreements)
• Unsettled trades (may delay or cause rejections)

Steps to initiate a transfer

1. Confirm account details match
   • Legal name, address, and tax ID should match at both firms.
2. Choose direction
   • Inbound transfer (to zenBank-supported account) or outbound transfer
3. Submit the request through the receiving firm
   • In most cases, ACATS is initiated by the receiving broker-dealer.
4. Track statuses
   • You may see statuses like Submitted → Validated → In Progress → Completed.

If your transfer is delayed or rejected (common reasons)

Transfers can be rejected or delayed for reasons like:

• Name/tax ID mismatch
• Account type mismatch (e.g., IRA to individual)
• Open/unsettled trades at the delivering firm
• Existing holds or restrictions
• Options/margin permissions not aligned
• Unsupported assets

What to include if you contact support

To help us route and resolve faster, include:

• Account ID (zenBank-supported)
• Transfer direction: inbound or outbound
• Delivering/receiving firm name
• Date initiated
• Any transfer reference number shown in your portal (if available)
• A list of assets that appear missing (symbol + quantity)

Disclosures / important notes

• Transfer timelines are estimates and may vary due to market conditions, corporate actions, holidays, exceptions processing, and third-party dependencies.
• Some assets may be transferred after the main transfer via residual sweeps.
• zenBank may not support all asset types in all jurisdictions.

Reminder: This Help Center is for informational purposes only and does not constitute investment advice, legal advice, tax advice, or an offer to buy or sell securities. Trading involves risk, including possible loss of principal.