The New Challenges For Clearing Brokers Correspondent Clearing Staying in Front in Digital Age
Traders Magazine, February 1999
A clearing and execution firm was once considered the invisible partner in the life cycle of the institutional and retail trade. The visible partner was the broker dealer on the front lines, sending the trade to the clearing firm for processing. The clearing firm's customer, the introducing or correspondent broker, arranged the trade while the clearing broker merely facilitated some routine backoffice functions.
This old-fashioned view of the correspondent-clearing firm, as the low-cost backoffice for other broker dealers, is becoming obsolete.
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