COMPARISON AND SECURITY CLEARANCE 31g
“Three-Way Exchange Tickets.”—Comparison is made
for all transactions in non-cleared stocks, and for all transac-
tions in non-cleared bonds made for “regular way” delivery,
by means of the “three-way exchange tickets.” This form on
buff paper consists, as its name implies, of three detachable
tickets: (1) a form retained by the receiver; (2) a receiver's
exchange ticket; and (3) a deliverer’s exchange ticket. The
first and third parts are printed in red, the second in black
(Figure 26). By means of carbon paper all three are made
out at once by the deliverer, except of course for the receiving
member’s signature. The deliverer then sends the triple form
to the receiver, who retains one of its “deliver” tickets and
returns the remaining “deliver” and “receive” tickets to the
deliverer ; this is done through the Distributing Department of
the Night Branch, and serves as a comparison. For the re-
ceiver will not sign the receiver’s exchange ticket until he ascer-
tains that the seller’s notation on it as to the identity, amount
and price of the securities upon it agrees with his own records
of the transaction. The “exchange tickets” are not an order
by the firms on the Stock Clearing Corporation to deliver or
receive for them, since the securities in this case are not cleared
at its Night Branch. They are, as we shall presently see,
used later on in connection with the establishment of the firms
contingent credits and debits in the Day Branch money clear-
ance and settlement.
“Four-Way Deferred Delivery Bond Contract
Tickets.” —It has been pointed out’? that in bond transactions,
a system of deferred delivery is frequently employed, whereby
the delivery is made on the seventh full business day following
the day of contract, but may be made on any full business day
prior thereto upon one day’s notice by the seller. Such deferred
delivery transactions in bonds make necessary a special method
of comparison, in which a quadruplicate blue form is used:
(1) a deliver bond contract; (2) a receive bond contract; (3)
1 See Chapter XIV, p. 385.
12 See Chapter X, p. 270.
