Once the transactions on the market, we must ensure that each intermediary is able to ensure its commitments, that actions are delivered and that payment is made.

The life of your title
What’s going on there between when an individual applies to the teller asking him to buy stocks and when he becomes the legal owner?

The order to the bank (by mail, fax, Internet or going there to fill out a form) can be produced on the market. The bank is not in general market intermediary (in fact, most French banks have chosen not to adopt this status).
In a second step, the receiving bank’s stock market order will pass through a trading member who alone has the right to enter orders to buy or sell and to compare them with other orders. But often, the market intermediary is part of the same group as the bank to which you are addressing.


Once the negotiation is successful, that is to say that the orders were products on the market, the price and quantities traded have been found, it should ensure that each intermediary is able to ensure its commitments, to account for purchase orders and sales and to submit an account balance that was carried out on behalf of its clients, or your own. This is the function of clearing the market, an organization that will guarantee both operations which have not resulted in actual regulations. It is a credit institution which assumes a financial risk during the time between negotiation and settlement as described above.

Once completed the negotiation, offset, we will have the titles (or species) lead on behalf of individuals who have bought (or sold). It is the role of business settlement that must deliver on the account that holds the individual, not usually in the negotiator but generally content with his establishment of account (eg bank early process we have described briefly).

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