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

404 THE WORK OF THE STOCK EXCHANGE become infrequent. Yet this unfortunate contingency must of course be provided for by the settlement system. If a member becomes insolvent before turning in his “night clearance sheet” at the Night Branch, and thus involving his contracts in the process of security clearance, the Stock Clear- ing Corporation is not involved in his failure. Stock Exchange members proceed to “buy in” securities which the insolvent has sold them, and “sell out” securities which he has bought from them. If money losses result from this process, they constitute claims by these members against the assets of the insolvent. On the other hand, should profits result, these would he paid over to the insolvent. In this way, all contracts entered into with fellow Exchange members by the insolvent would be settled “‘ex-Clearing House” and without involving the re- sources either of the Stock Clearing Corporation, or its clearing members as such. But if the member’s insolvency is announced after his “night clearing sheet” has entered into the security clearance, all secur- ities deliverable to or deliverable by the clearing member in accordance with security balance orders of the Stock Clearing Corporation are immediately sold out or bought in on the floor of the Stock Exchange by the parties having them to deliver :o0 the insolvent or receive from the insolvent. If a profit results front the selling out or the buying in of securities deliverable to or deliverable by the insolvent clearing member under a security balance order, the clearing member realizing such profit at once sends a statement of the transaction to the Stock Clearing Corporation and pays over the profit to it for the account of the insolvent member. If a loss results from the selling out or the buying in of securities deliverable to or deliverable by the insolvent clearing member under a security balance order, the clearing member sustaining the loss at once sends a statement of the transaction to the Stock Clearing Corporation which pays him the amount

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