MONEY CLEARANCE AND SETTLEMENT" 38g
constitute orders upon the Stock Clearing Corporation to credit
a member’s account for the money value of securities which he
delivers, and to charge his account for the money value of
securities which he receives.
Checking of Non-Cleared Security Contingent Lists.—
It was pointed out® that the Night Branch, in the course of its
security clearance, audits all Stock Exchange transactions in
cleared securities. A comparable service is afforded transac-
tions in non-cleared securities by the Day Branch.
Each morning each clearing member sends to the Day
Branch his contingent lists for non-cleared securities, together
with the exchange tickets for the items which they record.
Clerks in the Day Branch check every item on every such con-
tingent list against the signed exchange ticket for it sent in
by the other party to the transaction. This process resembles
the checking in the Night Branch of every member's “Night
sheet” by the exchange tickets of the other parties sent in
with it.” Due to it, the Stock Clearing Corporation is assured
that every transaction in non-cleared securities has been com-
pared and acknowledged by the two parties to it. The footings
of the debit sheets are then checked, since these constitute the
charges against members’ accounts which will be made that
day, subject to “failures to deliver.” The contingent lists are
passed to racks as they are checked, and then to the cages where
the member accounts to which they apply are kept. Since non-
cleared stocks are delivered through the Central Delivery De-
partment, contingent lists for them are made out in duplicate
and the extra copy is sent to the Central Delivery Department.
Establishment of Contingent Credits and Debits.— The
cages where member accounts are kept obtain the contingent
lists in cleared securities of their respective clearing members
by 10 A.M. With each account, the total contingent credits as
shown on the member’s contingent credit lists are entered on
¥See Chapter XII, p. 344
