Regarding order entry, which statement is true?

The statement indicating that it must be flagged whether an order is customer or proprietary is indeed true. In the context of order entry in trading systems, distinguishing between customer and proprietary orders is crucial because it impacts how trades are executed, reported, and handled for compliance with regulations. Customer orders typically indicate transactions for clients who are not trading with their own capital, while proprietary orders refer to trades executed on behalf of the firm itself, often using the firm’s own funds. This differentiation helps in maintaining clarity and ensuring proper risk management as well as regulatory adherence.

The other statements do not hold true across the board. Client ID assignment may not always be mandatory, depending on the system and the nature of the transaction. The ability to enter new orders during a voluntary auction can vary based on specific market rules, and not all order types are universally available for every instrument, as some instruments may have specific requirements regarding the types of orders that can be placed. Therefore, clarifying whether an order is customer or proprietary is essential for accurate recording and regulatory compliance.