The work of the Stock Exchange

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Monograph

Identifikator:: 1831284952

URN:: urn:nbn:de:zbw-retromon-225876

Document type:: Monograph

Author:: Meeker, James Edward http://d-nb.info/gnd/126597340

Title:: The work of the Stock Exchange

Edition:: Revised edition

Place of publication:: New York

Publisher:: The Ronald Press Company

Year of publication:: [1930]

Scope:: XVI, 720 Seiten; Illustrationen, Diagramme

Digitisation:: 2022

Collection:: Economics Books

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Document type:: Monograph

Structure type:: Chapter

Title:: Chapter XIV. Money clearance and settlement

Collection:: Economics Books

MONEY CLEARANCE AND SETTLEMENT 385 balance he draws a single draft against the Stock Clearing Cor- poration. The savings which this method make possible are, 2s we shall see. enormous. Cleared Security Debit Contingent Lists.— Naturally it is highly important that the Day Branch get an accurate idea of the magnitude of each clearing member’s prospective money transactions in the money settlement each day, before this set- tlement actually begins. This is the reason for its use of the “contingent lists.” We have seen? that in cleared securities the Night Branch in the course of its security clearance reduces all contracts between Stock Exchange members to balances which issue by issue are priced at “delivery” or “settlement” prices. Thus, the first thing each morning, each clearing member knows just what security balances he must deliver and receive that day, and consequently how much money he will take in and pay out in the settlement. Accordingly, he makes out a “debit con- tingent list” itemizing all the security balances which he must receive and pay for. These “debit contingent lists” for cleared securities are printed in black on white paper (Figure 43), and for cleared bonds in black on pink paper. Attached to this form 1s a perforated slip for “failures to receive.” On the back of the debit list is an assignment form whereby the firm making out the list pledges the securities mentioned on the list to the Stock Clearing Corporation, to secure the latter for sums due to it from the firm.? These contingent debit lists for securities cleared at the Night Branch are made out early in the day and sent to the Day Branch. The total money amounts of contingent debits are then entered on each member’s Day Branch “record sheet” in the columns provided for such entries. Thus, as far as the money value of deliverable balances in cleared securities is concerned, each member’s “record sheet” at the beginning of "2See Chapter XII, p. 329 8 See Avpendix XIVa

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