CHAPTER XIII 
SECURITY DELIVERIES, LOANS, AND 
TRANSFERS 
In the previous chapter it was pointed out that the whole 
process of security clearance and settlement involved five essen- 
tial stages. The first two of these—comparison and security 
clearance—have already been described in Chapter XII, while 
the last two—money clearance and money settlement—remain 
to be dealt with in the next chapter. The present chapter will 
be devoted to the third stage—that of security deliveries and 
security loan handling, as well as to the Transfer Department 
of the Stock Clearing Corporation. 
Former Methods of Making Security Deliveries.—By 
rule of the Stock Exchange, the security deliveries called for 
by “regular way” purchase and sales contracts on the Ex- 
change, must be made on the next full business day following 
the date of contract. In consequence, Stock Exchange firms 
deliver and receive securities in the daily settlement from about 
[0 A.M. to 2:15 P.M. each full business day. 
Until the recent inauguration of centralized security de- 
liveries, of which more anon, it was the immemorial practice 
in Wall Street for each Stock Exchange firm which was a 
seller or lender to make deliveries of the securities direct to the 
office of the buyer or borrower who had these particular securi- 
ties to receive.! Originally the deliverer’s messenger was given 
in exchange a check in payment by the buyer; after the estab- 
lishment of the Day Branch of the Stock Clearing Corporation 
in 1920, the deliverer’s messenger obtained, instead of a money 
check, a special receipt on what is known as the “delivery 
 W——. 
1 See Appendix XIlIa. 
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