| Dictionary, Encyclopedia and Thesaurus - The Free Dictionary 1,762,393,484 visitors served. |
|
Dictionary/ thesaurus | Medical dictionary | Legal dictionary | Financial dictionary | Acronyms | Idioms | Encyclopedia | Wikipedia encyclopedia | ? |
Clearing Firm |
0.02 sec. |
|
Clearing Firm A company that settles transactions on behalf of clients by the payment of the price and often the delivery of securities. Because so many transactions occur at a given time, and because they may directly or indirectly involve a number of third parties ? such as brokers, dealers, or specialists ? clearing firms net all transactions so that the least amount of money and securities actually needs to change hands. There are a number of large clearing firms that operate on different exchanges, notably Clearstream International, Euroclear, and the DTCC. Clearing firm. Clearing firms handle the back-office details of securities transactions between broker-dealers, making the settlement process streamlined and efficient. In brief, when a broker's order to buy or sell a security has been filled, the clearing firm electronically compares and verifies the details of that trade. Then it nets down the trades to minimize the number of securities that must be received or delivered at settlement. Cleared trades are settled within a specific time after the trade date, based on the type of security being traded. How to thank TFD for its existence? Tell a friend about us, add a link to this page, add the site to iGoogle, or visit webmaster's page for free fun content. |
|
| ? Mentioned in | ? References in periodicals archive | |
|---|---|---|
Fails on short sales can be closed out by the clearing firm by either borrowing or purchasing the security that was the subject of the fail, while fails caused by long sales can only be closed out by the clearing firm by purchasing the security. Now when a trade goes against a hedge fund, the fund may be called upon by the clearing firm to put up more margin, meaning cash, or securities to protect the clearing firm. Typical processing times for ACAT transfers are five-to-ten days for transferring accounts within the same clearing firm (example: Pershing to Pershing); 10-to-20 days for transferring accounts to different clearing firms (example: Pershing to Bear Sterns). |
| Financial Dictionary |
| Free Tools: |
For surfers:
Free toolbar & extensions |
Word of the Day |
Help
For webmasters: Free content | Linking | Lookup box | Double-click lookup | Partner with us |
|---|