390 THE WORK OF THE STOCK EXCHANGE
his record sheet in its “contingent credit” column, and similarly
the total contingent debits from his debit list are put on his
record sheet in its “contingent debit” column. In cleared
securities, which are all delivered through the Central Delivery
Department, only actual credit lists are used and therefore the
only contingent items entered on the member's record sheet for
cleared balances are debits.
By reason of these practices with the various kinds of con-
tingent lists, the Stock Clearing Corporation is in a position to
know to about what extent each of its members may be expected
to participate in the day’s money settlement, and is well pre-
pared for its actual business of effecting a money clearance and
settlement for its members.
As a preliminary assurance of accuracy, each cage makes a
record of all stock balances contingently deliverable and receiv-
able by members whose accounts are kept there, together with
their resultant contingent money credits and debits. Total con-
tingent credits for balances on cleared securities are obtained
from the Night Branch while total contingent debits on cleared
securities come to the Day Branch on the appropriate debit con-
tingent lists for cleared security balances. The “Proof Depart-
ment” of the Day Branch adds up total stock balances and their
money values, for all clearing members. Total stock balances
to deliver must of course equal total stock balances to receive,’
and thus the money value of the one (or the contingent credits
of all members) must equal the money value of the other (or
the contingent debits of all members). If such is found to be
the case, the accuracy of the contingent lists sent to the Day
Branch is “proved.” If the totals do not “prove,” then there
is opportunity for the Day Branch to run down the error in the
contingent lists to its source, inform the respective members,
and obtain corrected lists from them before the actual money
clearance and settlement begins. The Stock Clearing Corpora-
tion will not undertake to make corrections of any kind on its
own responsibility.
8 See Chapter XII. p. 338.
