Glossary of Municipal Securities Terms


broker-dealer that acts as clearing agent in connection with a municipal securities transaction. In addition to handling its own transactions, a clearing broker can provide clearing agent services to other broker-dealers, such as introducing brokers and other market participants. A clearing broker may provide such back office and related recordkeeping functions on either a fully disclosed or omnibus basis. In a “fully disclosed” relationship, the introducing broker must disclose the identity and other relevant information regarding the client to the clearing broker. See: CLEARING AGENT; INTRODUCING BROKER.

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