What Is A Clearing Firm? Updated 2023
ContentJob Description of a Fixed Income TraderIntroducing Broker vs Clearing BrokerWhat Is a Clearing Firm or Clearing Broker?Clearing and Settlement: The Backbone of Broker Dealer Operations Clearing firms charge custody fees to cover the costs of holding and protecting the assets of their clients’ assets. They also include the costs of facilitating asset transfers, maintaining custody accounts, and providing safe, secure self clearing broker dealer storage for clients. Beyond trade settlement, clearing firms also hold custody of account holders’ securities and other assets, such as cash. They play a crucial role in reducing the risk of failed trades by confirming that all parties have the necessary funds and can meet their commitments. Job Description of a Fixed Income Trader They can use blockchain technology to enhance transparency and reduce settlement…