A number of different entities are required to support the trading markets. Some of these organizations are divisions of other entities that are actively engaged in trading. Other organizations are purpose-built for the support functions they provide. Figure 1.4 highlights the types of entities that support the trading markets.
Figure 1.4 Support entities provide clearing, settlement, safekeeping, financing, and technology products and services to facilitate the operation of the trading markets.
Clearing corporations serve the function of “insuring” transactions between the time the trade is complete and the point ...