Final answer:
Brokers in the United States are required by SEC Rule 17a-4 to keep transaction records for a minimum of three to six years, with the exact time depending on the type of record and applicable state laws.
Step-by-step explanation:
The question pertains to the period a broker must retain records of a transaction after its closure. In the United States, the Securities and Exchange Commission (SEC) mandates brokers to keep records for a specific duration. According to SEC Rule 17a-4, brokers are generally required to preserve records of all transactions for a period of not less than three to six years, the first two years of which the records must be in an easily accessible place.
However, certain records, like blotters and ledgers, must be kept for six years, whereas records related to complaints, advertisements, and other specific documents must be retained for three years. It is critical for brokers to adhere to these rules to ensure compliance with regulatory standards and to protect the interests of both the brokerage firm and its clients.
Therefore, the earliest date a broker can discard the records of a transaction would be at least three years after the close of the transaction, but this can vary depending on the type of record and applicable state laws that may have longer retention requirements.