Safekeep


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Safekeep

Holding by a bank of bonds and money market instruments. For a fee, the bank clips coupons and presents for payment at maturity.

Safekeeping

The act of a brokerage holding a client's securities or other assets on his/her behalf. This reduces the risk of the client losing his/her assets or having them stolen. They are also available to the brokerage to sell at the client's demand. Like a bank, safekeeping provides an investor a place to store assets with little risk. Unlike a bank, brokerages are not allowed to use the items in safekeeping for their own ends. Assets in safekeeping are not fungible for the brokerage because they remain in the client's name; for this reason, brokerages normally require a fee for safekeeping services. See also: Street name safekeeping.
References in periodicals archive ?
The Federal Reserve Bank of New York signaled the importance of the new system when it announced that, for the first time, it was prepared to safekeep, in its book-entry system, securities owned by member banks located in Lower Manhattan.
Perhaps the most remarkable aspect of the Bank of Utica's customers was that almost all used the bank often, if only to safekeep and disburse cash.
Another prominent species of regulatory compliance trust arising in response to state law is the trust account that a law firm operates in order to discharge its duty to safekeep clients' funds.
China Construction Bank Corp has been chosen as its sub-custodian bank in China by CIMB Bank Bhd to clear, settle and safekeep China shares, bonds and other investment products on behalf of CIMB Bank and its clients.