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

Usage license:: Get license information via the feedback formular.

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Document type:: Monograph

Structure type:: Chapter

Title:: Chapter XIV. Money clearance and settlement

Collection:: Economics Books

308 THE WORK OF THE STOCK EXCHANGE Corporation will allow a given clearing member during the day is posted at the top of his “record sheet” at the beginning of the day. This amount ordinarily depends in each case upon the sum which the given member has contributed to the clear- ing fund; the minimum contribution to this fund is $10,000 and is scaled upwards from this figure in proportion as the given member employs the services of the Stock Clearing Cor- poration more extensively. Thus, by a temporary additional contribution to the clearing fund, a member may temporarily obtain larger credit in proportion. From the promptly posted items on the member’s record sheet, the officials of the Stock Clearing Corporation can obtain very quickly an exact state- ment of the member’s position at any time during the day. If he is using excessive accommodation, they will at once demand of him, either that he at once establish new credits and post- pone the establishment of additional debits in his account, or else that he send to the Corporation immediately his certified check for the amount by which the accommodation extended to him exceeds the sum allowed him by the Corporation. In this way, adequately safeguarded by its legal rights and its practical precautions, the Stock Clearing Corporation is able to impart a great flexibility to the whole stock settlement sys- tem by extending to its members temporary accommodation which they might otherwise have to seek at the banks in the form of unsecured “day loans” ; thus the employment of such “day loans” has been extensively obviated by the Stock Clear- ing Corporation. In addition, by its especial ability to super- vise, facilitate, and closely observe its members’ daily delivery and settlement operations, the Stock Clearing Corporation is able, when the occasion requires, to safeguard and stabilize the whole settlement by on occasion halting the extension of unjustified accommodation to members, and by shortening the time during which it is employed. Money Clearance and Settlement.—We have now pur- sued the complex process of settling Stock Exchange contracts

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