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 XII. Comparison and security clearance

Collection:: Economics Books

COMPARISON AND SECURITY CLEARANCE 313 “comparison.” Second, a security clearance may or may not occur, depending primarily on whether it is an active or inac- tive security. Third, the security (or, if cleared, the security balance) must be delivered. Fourth, a clearance of the money value of security deliveries occurs. Fifth and finally, the money settlement must be made. It is somewhat difficult to describe these several processes, for the New York Stock Exchange clearance and settlement system has grown up section by section, is in part optional with members, sometimes differentiates in its methods between different classes of securities or different individual security issues, is still rapidly expanding, and has as yet by no means reached the end of its possible and even probable future evolu- tion. In principle, stock exchange clearing and settling systems are no different than bank clearing houses or the Gold Settle- ment Fund of our Federal Reserve system. They are, how- ever, much more complex, for where a bank clearing house handles only the one commodity of bank funds, or the Gold Settlement Fund the one commodity of gold, a stock clearing house must handle both money and securities, and often many completely different issues of securities too. In addition, stock clearing systems sometimes perform for their members other important functions beside simply the clearance and settlement of their sales contracts with each other. In this and the following two chapters the attempt will be made to describe these several related functions as clearly as possible, and at the same time as nearly as possible in their actual sequence. The Pre-Stock Clearing Corporation Days.—The first complete system of stock clearance was inaugurated at Frank- furt, and the important economies which it effected soon led to the development of similar systems in London, Paris, Vienna, Berlin, Hamburg, and other European centers. Today, only Amsterdam of the important financial stock exchanges has no clearing and settling system. In America, the first

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