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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.


The keeping of assets, including securities, by a financial institution.


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.

References in periodicals archive ?
To examine these issues, the library method was employed to gather the scholars' opinions on key Shari'ah issues such as the safekeeping charge and conflict in muqtada al'aqd (nature and implications of the contract) arising from a combination of contracts.
c) -- I am not in compliance with the trust account and safekeeping property rules.
But we are pleased to receive back into safekeeping the various items the borough council has presented to the unit over the years.
For the fifth: year running, Citigroup ranks as the World's largest global custodian, charged with the Safekeeping of nearly $4.
com) is committed to the continued existence of paper--and has persuaded 3,000 customers to trust it with storing their records for safekeeping.
Recently, several financial institutions suffered losses when deposit brokers (entities that broker, among other things, certificates of deposit), to which they had sent funds for the purchase and safekeeping of CDs, failed.
The Council on Library and Information Resources funded NLA's Safekeeping Project, which targets 170 key items accessible through Preserving Access to Digital Information (PADI).
As the organization prepared to close its doors, twenty-four volunteers, alerted by Levin and Murnane, arrived at the DU offices to retrieve thirty-six boxes of files and transport them to Burns Library for safekeeping.
The data, classified top secret, was maintained by the Joint Chiefs of Staff and in 1976 declassified and delivered to the National Archives for safekeeping.
Quite rightly considered precious works of art, these blocks were hidden for safekeeping during the second World War.
This new controversy follows a television documentary report last year that the Vatican held 200 million Swiss francs, $170 million today, for Croatian fascists for safekeeping.
Definitive Safekeeping and Noncash Collection Services