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Zorluk: OrtaDepositories, Clearing Corporations, and Settlement Entities

When an institutional investor purchases corporate equities, the executing broker-dealer credits the position to the investor's account electronically rather than physically delivering paper certificates. Which capital market entity maintains centralized custody of immobilized security certificates and facilitates ownership changes via electronic book-entry settlement?

  1. The Depository Trust Company (DTC)Cevap
  2. B
    The National Securities Clearing Corporation (NSCC)
  3. C
    The executing broker-dealer's clearing department
  4. D
    The Securities and Exchange Commission (SEC)

Cevap

The Depository Trust Company (DTC) is the central depository entity responsible for holding custody of immobilized physical securities certificates and executing ownership settlement via electronic book-entry entries.
The Depository Trust Company (DTC), a subsidiary of the Depository Trust & Clearing Corporation (DTCC), functions as the primary central securities depository in the U.S. It immobilizes physical certificates and processes securities transfers through electronic book-entry bookkeeping.

Adım Adım Çözüm

1
Identify the primary operational requirement described in the stem.
The scenario highlights maintaining central custody of securities certificates and facilitating electronic book-entry settlement.
Post-trade infrastructure splits operational responsibilities between clearing (netting/novation) and depository/custody services.
2
Differentiate between clearing corporations and central depositories.
The National Securities Clearing Corporation (NSCC) handles trade clearance and netting, whereas the Depository Trust Company (DTC), a subsidiary of DTCC, holds custody and performs book-entry transfer.
DTC immobilizes physical certificates and enables paperless book-entry transfer across market participants.

Anahtar Kavram

Depository vs. Clearing Corporation Operational Roles
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Konular

Depositories, Clearing Corporations, and Settlement Entities

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