Execution Time: The Ten Steps in a Trade

Step 10. Clearing Up the Trade

Step 10. Clearing Up the Trade

To settle the trade, the parties involved use a clearing firm.

Funds are moved from the buyer´s account to the seller´s account.

The buy-side firm uses a custodian as an intermediary for the clearing of the trade.

Source: Cisco Systems.“High Performance Trading Fabric."



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