Clearing Process, Brokers, and Systems

These pages cover operational clearing roles and workflows between execution and settlement, including broker responsibilities and system-level confirmations.

In this section

• Clearing Broker: Ensuring Proper Settlement of Trades
  A Clearing Broker is instrumental in ensuring the proper settlement of trades, commonly working closely with Futures Commission Merchants (FCMs) to ensure accurate and timely trade execution and clearing.
• Clearing Member
  A Clearing Member is an entity authorized to clear trades through a Central Counterparty (CCP), playing a critical role in ensuring the integrity and efficiency of financial markets.
• Clearing System: The Backbone of Financial Transactions
  The process of reconciling purchase and sales transactions in financial markets.
• Clearing: Financial Intermediary Processes
  Clearing refers to the financial process where intermediaries such as banks reconcile purchases and sales of securities, ensuring the transfer of funds and updating trading party accounts.
• Nasdaq Automated Confirmation Transaction (ACT) System: Trade Reporting and Clearing for Nasdaq Securities
  An overview of the Nasdaq Automated Confirmation Transaction (ACT) System, detailing its functions in trade reporting and clearing for Nasdaq securities.
• Qualified Special Representative Agreement (QSR)
  An in-depth exploration of the Qualified Special Representative Agreement (QSR), a strategic agreement allowing broker-dealers to clear trades independently of the Nasdaq ACT system.