Also found in: Dictionary, Thesaurus, Idioms.


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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved


The keeping of assets, including securities, by a financial institution.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.


Safekeeping occurs when a broker-dealer holds securities that are registered in a client's name for the client.

The advantage from the client's perspective is that the securities are safe and the broker-dealer has them available to sell at the client's instruction.

The disadvantage from the broker-dealer's perspective is that securities held in a client's name are not fully negotiable or fungible, so they can't be used to settle trades, for example. Thus, it's a service for which many firms charge a fee.

Instead of being registered in their own names, clients' securities may be registered in the broker-dealer's name or in the name of a depository. That's known as being registered in street name or nominee name.

With this type of registration, the client's ownership rights are fully protected but the stock is fungible. The broker-dealer may use a limited portion of the holding to settle trades or for other purposes.

Dictionary of Financial Terms. Copyright © 2008 Lightbulb Press, Inc. All Rights Reserved.
References in periodicals archive ?
Sunstate has licensed SS&C's Lightning Trading, Funding, Safekeeping, DDA General Ledger and Web Portal modules and will benefit from a solution that links front, middle and back office processes.
If you are worried about safekeeping of your insurance policies, the Insurance Regulatory and Development Authority's insurance repository will come to your rescue.
This is inclusive of the modus operandi of the current structure, its unique features, formula for calculation of the safekeeping fee, the financing margin, and the redemption mechanism.
Safekeeping is similar to the hero's journey we have seen throughout literature.
The FHLB will also leverage Citi's proprietary platform to deliver white-labelled settlement and safekeeping services to its member banks.
It also ensures proper safekeeping of documents, which in turn improves management and maintains rights and interests of individuals and society.
This covers a range of services including equity and fixed income securities settlements, safekeeping, corporate actions, income and entitlements collection, proxy services, foreign ownership monitoring and disclosure services, cash management, foreign exchange, reporting, and information services to clients.
Q When I bought my house in 1970 I used a local firm of solicitors who retained my title deeds for safekeeping. About two years ago I discovered that the property was not registered at the Land Registry.
A PERSISTENT thief who burgled his neighbour's home told police he only removed a laptop computer for "safekeeping".
I certify that I have read the rules applicable to lawyer trust accounts and safekeeping property in chapter 5 of the Rules Regulating The Florida Bar [] and that:
Individuals with orders of protection issued against them soon will have their Firearm Owner's Identification (FOID) Card revoked, requiring them to surrender their guns to a local law enforcement agency for safekeeping. Illinois lawmakers recently amended the Firearm Owners Identification Card Act to "revoke and seize" a FOID card of any person who is subject to an order of protection.
Add a man's search for his long-lost mother, a princess sent to a kingdom for safekeeping, and a mystic's curse of loneliness and power and you have four distinct powerhouse reads perfect for any science fiction collection.