 |

Entities in the trading system in Indian Stock Markets |
|
|
Submitted by Janeane Carnagie
| RSS Feed
| Add Comment
| Bookmark Me!
There are four entities in the trading system. Trading members, clearing members, professional clearing members and participants.
1. Trading members: Trading members are members of NSE. They can trade either on their own account or on behalf of their clients including participants. The exchange assigns a Trading member ID to each trading member. Each trading member can have more than one user. The number of users allowed for each trading member is notifi ed by the exchange from time to time. Each user of a trading member must be registered with the exchange and is assigned an unique user ID. The unique trading member ID functions as a reference for all orders/trades of different users. This ID is common for all users of a particular trading member. It is the responsibility of the trading member to maintain adequate control over persons having access to the fi rms User IDs.
2. Clearing members: Clearing members are members of NSCCL. They carry out risk management activities and confi rmation/inquiry of trades through the trading system.
3. Professional clearing members: A professional clearing members is a clearing member who is not a trading member. Typically, banks and custodians become professional clearing members and clear and settle for their trading members.
4. Participants: A participant is a client of trading members like financial institutions. These clients may trade through multiple trading members but settle through a single clearing member
|
|
 |

|
LinkedIn Recommendation:
Jonah William - Owner at Tessier Marketing - I thought I was well versed in social media before I found Teo. He has helped me round my skill set with great information only he seems to teach. I went on the web and looked for it later, but it's just not there. The ShareThis.com counters for instance, which definitely don't work right... can't find that anywhere, but it's easy to prove once you know what to test for! Teo really has a way of getting to what works and what works best! - March 17, 2012, Jonah was Teo's client |
|
Featured [Stock Market] Articles:
|
 |