NISM Certifications · NISM-Series-VII: Securities Operations and Risk Management · Market Participants in the Securities Market
A broker wants to carry out trades on the exchange on behalf of clients as well as for his own account and also clear and settle them through the clearing corporation directly. Which category of member does this describe?
This describes a trading-cum-clearing member. Such a member can trade for clients and itself and also clear and settle those trades directly with the clearing corporation, whereas a pure trading member relies on another clearing member and a professional clearing member only clears trades.
- ATrading member only
- BProfessional clearing member only
- CTrading-cum-clearing memberCorrect
- DDepository participant only
Explanation
A trading-cum-clearing member can trade and also clear and settle its own and its clients' trades directly with the clearing corporation. A trading member only needs a clearing member to settle, and a professional clearing member only clears for others without trading. A DP deals with demat accounts.
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