What is a clearing firm?
A clearing firm is a securities broker/dealer that works with execution partners (whether other broker/dealers, exchanges and/or Electronic Communications Networks) to facilitate the execution, confirmation, delivery, and settlement of securities. A clearing firm also holds customer funds and securities.
A clearing firm is an organization that works with the exchanges to handle confirmation, delivery and settlement of transactions. Such corporations play a key role in ensuring that executed trades are settled within a specified period of time and in an efficient manner. They are also called a clearing corporation or clearing house.
Related Questions
- My firm acts as an introducing broker/dealer on a fully disclosed basis with multiple clearing firms. Can I qualify for the exclusion to OATS reporting under Rule 7410(n)?
- What are the reporting requirements for a clearing firm whose correspondent sends orders directly to other broker/dealers outside the clearing firm?
- What are the times that must be reported to OATS when a correspondent receives an order and sends that order to a clearing firm?
