The work of the Stock Exchange

Bibliographic data

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.

638 APPENDIX of their accounts to others were in practice unfounded. The signal services of the stock clearance during the panic of 1893 and the boom of 1901 clinched the arguments in favor of the practice. The legal aspect of the new stock clearing system had .yet to be clearly established, since few if any direct precedents for such a prac- ‘ice existed—at least in New York State. Objections to security clear- ance on legal grounds were always based upon misconceptions, how- ever, and have gradually died out as the principles of clearance have vecome more familiar in other lines of financial and commercial business. The evolution of the Stock Clearing Corporation has been de- scribed passim in the text, but its outstanding stages can be briefly chronicled here. On April 26, 1920, the Corporation inaugurated its Day Branch operations, which at first were confined to a money clearance and settlement of the cash extensions of its members’ Night Branch share balances, and after March 22, 1921, of Liberty Bond balances. Gradually, however, the Day Branch began to per- form a similar money clearance and settlement with securities not sleared in the Night Branch—on September 15, 1922, with non- cleared shares, on December 8, 1922, with non-cleared foreign bonds, and on June 5, 1923, with all other non-cleared bonds. By this last date, all securities traded in upon the Stock Exchange were cleared and settled as to their money amounts by the Day Branch, except for lots of less than 100 shares or $1,000 par value of bonds. The clearance of members’ security collateral loans was inaugu- rated by the Day Branch on March 22, 1921. Also, almost from its inception the Day Branch has conducted special clearances, especially in “when issued” securities. The Transfer department was estab- lished May 31, 1923, to handle the assignable transfer receipts; on September 20, 1926, the similar employment of exchange receipts began, and shortly afterwards the use of the temporary exchange re- ceipts. Settlement of commission bills through the Stock Clearing Corporation was inaugurated July 16, 1927. The Central Delivery Department first opened for operation on April 18, 1929. During the post-war period, clearances in active bonds had been held—oparticularly in U. S. Liberty Loans and foreign government bonds. This was discontinued when these issues became inactive in the market. But on November 26, 1929, clearances of active bonds— particularly convertible issues—were resumed On June 3, 1930, machine clearance for cleared bond contracts was inaugurated. (XIIb) The following excerpts, taken from Chapter II of the Constitution and Rules, relate to comparisons :

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