Clearing, Settlement and Custody

The global clearer will now settle the trades with the clearing house

and the client. As part of the service the brokerage due to the

execution brokers is paid by the clearer who in turn includes this

amount in their clearing charge to the client.

Treasury operations

The treasury function is primarily concerned with money in terms of

cash management, transmission and receipt of funds and controlling

the risk associated with these processes. In Chapter 6 we saw how

custodians are very much involved in this process with their clients.

Treasury settlement is in effect the support function for the activity

of dealers in cash instruments as well as providing ...