What type of execution is required in regards to timely recording and allocation of client orders?

Timely recording and allocation of client orders are critical components of ensuring fairness and transparency in trading practices. Sequential execution in due turn based on timestamps is the correct answer because it ensures that all orders are executed in the order they were received. This approach prioritizes fairness, as clients' orders are treated equitably based on the precise timing of their submissions.

Implementing this method helps to maintain market integrity and build trust, as it prevents situations where some clients might receive preferential treatment over others due to arbitrary or non-sequential order handling. The focus on timestamps establishes a clear and defensible framework that regulators can review to ensure compliance with market practices.

In contrast, other methods, such as random assignment or immediate execution without regard to order received, could lead to inefficiencies and perceptions of favoritism, undermining confidence in the trading process. Client directed and managed allocation, while client-centric, can lack the systematic fairness that timestamp-based sequential execution provides.