CHAPTER XIV

MONEY CLEARANCE AND SETTLEMENT

The Concluding Phases of the Settlement Process.—QOf
the five basic steps which compose the settlement process, comparison
 and security clearance were described in Chapter XII,
and security delivery in Chapter XIII. In the latter, loan
clearance and the issuance of transfer receipts were also explained.
 In the present chapter it remains to describe the last
two stages of the settlement process—money clearance and
money settlement, which are carried on in the Day Branch of
the Stock Clearing Corporation.

Quarters of the Stock Clearing Corporation.—It has been
pointed out that the Night Branch of the Stock Clearing Corporation
 (including its Distributing Department and its Clearance
 Department) is located at 55 New Street. All the rest
of the Stock Clearing Corporation offices are housed in the
basement of the Stock Exchange building itself, immediately
beneath the Exchange floor. Under the Wall Street extension
of the floor is the Central Delivery Department, whose operations
 have already been described. Beneath the old Board
Room of the Exchange are the Day Branch headquarters; its
outer walls are lined with the booths or cages for the large
New York banking institutions whose operations in connection
with loan clearance and non-member deliveries have been outlined.
 The center of the room is occupied by a hollow square
of banking cages in which the accounts of the clearing members
 are kept. Inside this square space is provided for sorting
and checking the “three-way exchange tickets” on non-cleared
securities, and also the charge and credit tickets, before these
are sent to their appropriate cages and entered in the clearing