Clearing is the process through which purchases and sales of a variety of assets and securities are reconciled. Funds will be transferred directly from one financial institution to another, and the safe custody of funds will be guaranteed before settlement.
There is a vast range of industry terms used across global markets. Many of these terms can be confusing, with some overlap between the range of services and technicalities they describe. One instance of this is global clearing and safe custody services. Here well take a look at some of the tasks that clearing firms and custodian firms take care of and the difference between the two.
Hong Kong is currently the fourth largest territory for global trade execution in the forex market and the world’s largest Renminbi forex market. There are plenty of opportunities for intelligent traders to maximise their returns on the Hong Kong markets.
The number of terms, acronyms, and abbreviations relating to global financial markets, investing, and trading can confuse anyone, even industry professionals, sometimes.
Our comprehensive glossary provides a handy reminder to those that use prime broker services.
When it comes to trading and investing, your choice of online brokerage will greatly impact your chances of success. Global trade execution is a multifaceted process that requires a range of skills, a depth of knowledge, experience and the right technological support to be successful.
Contemporary markets are faster and more competitive than ever. In such an environment, if a trader wishes to achieve their goals for any particular trade execution, then low latency is vital.
Brokers work in a regulated environment, which means they are required to give investors the best execution service possible. With the widespread adoption of technology, the cost of trade execution has reduced, and different markets have become more accessible to a wider variety of investors.
Global trade execution using the Hong Kong stock exchange is, in fact, no more difficult than trading elsewhere, particularly when you use a broker on the ground in the territory with a deep understanding of the regions markets.
CHATS is a real-time gross settlement (RTGS) system for the transfer of funds in Hong Kong. Global clearing and safe custody services operating in Hong Kong markets rely on CHATS to provide an efficient and secure means to transfer funds. How it works is sometimes unclear, but understanding the mechanics of CHATS can be helpful when it comes to confidence in the global clearing services system to carry out whats required.
Brokerage clearing services are offered by clearing brokers who play a vital role in the securities market. Their extensive knowledge helps to ensure that the system works as efficiently as possible and that transactions can be depended upon to be completed. As well as handling orders, they also provide safe custody of an account holders securities.