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What is a clearing member account and how is it different from a beneficiary account?

April 26, 2017account Beneficiary clearing different

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What is a clearing member account and how is it different from a beneficiary account?

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A registered member of any of the stock exchanges that have direct connectivity with the depositories holds a clearing member account or pool account. Pool account is used by the members to hold securities from clients and deliver them to clearing corporations. This account is also used to receive securities from the Clearing Corporations and onward distribution to clients.