316 ‘THE WORK OF THE STOCK EXCHANGE
over 1,300 stock issues now listed, only about 450 are at pres-
ent cleared, for in practice it has been found that no economies
can be effected by clearing any issues except those actively dealt
in upon the Stock Exchange. Also, except on special occa-
sions, the Night Branch does not clear odd-lot transactions in
from 1 to gg shares, but confines itself to transactions in round
lots of 100 shares or multiples thereof.” However, the volume
of stock transactions which are cleared averages about go% of
the total sales of stock recorded upon the Stock Exchange
stock ticker tape.
Thus, from the viewpoint of security clearance and settle-
ment, Stock Exchange listed securities can be divided into the
“cleared” and “non-cleared” stocks and bonds, and this dis-
tinction is preserved largely throughout the whole process.
Comparisons.—The process of comparison constitutes the
initial step in the whole process of security clearance and settle-
ment.® We have seen that when Jenkins and Wilkins make
their contract for “100 Steel at 150” on the Exchange, each
broker at once sends a report of the transaction to his own
office in Wall Street. It remains for these two brokerage offices
to compare, in order to make sure that they are in exact agree-
ment as to the terms of the contract which their “floor mem-
bers” have just made. Until the Stock Clearing Corporation
has evidence to this effect frogn both members, it will not under-
take to clear or settle the transaction.
In every Stock Exchange house, the clerks keep “blotter”
records of transactions which their firms have currently made
on the floor. Transactions in cleared securities are entered on
the “Clearing House blotter,” while those in other securities
are recorded separately.’ In making comparisons, “exchange
tickets” are employed for cleared securities, “three-way tickets”
for non-cleared stocks and for non-cleared bonds settled “reg-
ular way,” and “four-way deferred delivery bond contract
7 See Chapter IX, p. 251.
8 See Appendix XIIb.
8 See Chapter XV, p. 418.
