Participants in the stock exchange 2
Along with the dealers and brokers, reviewed in the last chapter, the following members of the stock exchange: the registrar, clearing company and a depositary, to ensure its functioning. Their activities are also subject to licensing by the Federal Service on stock exchanges. Let's see what are the main functions of these institutions and how they differ among themselves.
Registrar (or the holder of the registry) - it is party to the stock exchange, whose activity is reduced to keeping a register of all holders of securities. This activity is an exclusive, which means that the registrant has no right to provide other services, and to combine their activities. The collection, storage and transmission of documents and information on personal accounts is the main function of the registrar. On the stock market by using these accounts and keep records of securities. The Registrar must:
provide information from the registry;
to open personal accounts and perform surgery on them;
to check the credentials of the signatories of documents;
inform the registered person of their rights and about the procedure and how to implement them.
Clearing Company - a member of the stock exchange, which provides non-cash payments for the sold and delivered goods and securities, as well as for services that are implemented with a mutual offset.
Clearing is the work of collecting, verifying, updating information on the transaction, and preparation of the relevant accounting documents. So defined the mutual obligations of the parties. Just clearing exercise test and delivery of the calculations.
Registrar and the clearing company formed and exist to protect the interests of exchange members and their clients, as well as to ensure the financial integrity of the stock exchanges in general. Clearing Company reserves the buyers and sellers a free and independent of each other, as if interrupting a direct link between them, formed in the process of buying and selling. Thus, a buyer or seller may be substituted by another, who also struck a deal on the stock exchange and had contact only with the clearing company. You do not need any permission from the original partner in the transaction committed. Clearing Company is the guarantor of transactions and bears full responsibility.
Clearing companies prevent defaulting companies in various economic shocks or increased volume of speculative transactions, which may lead to termination of the stock exchange and the bankruptcy of its members.
The depositary is a legal person, a stock exchange, which is based on the license of professional participant, leads depository activities. Activities of the Depositary is:
in implementing the settlement of transactions by conducting operations on the stock exchange and OTC market;
in the calculation and payment of dividends, payment of taxes on income;
in accounting and custody of securities, which may be in store as the depositary, and exist in the form of records;
in securities lending, as well as providing other services.
The duty of the depositary is to ensure safety of the securities or rights to them, as well as actions solely to the depositor (the person who has entered into an agreement with the depositary). The depositary has no right to carry out transactions with securities, dispose of or manage them. Because the securities are not owned by the depositary, it can not be presented to recover on its obligations. Taking into account the possibility of combining several types of professional activities, the organizational structure of each exchange is unique and quite challenging. For example, the depositary can simultaneously carry out a dealer, clearing and brokerage activities.
