Clearing Agreement Sample

The clearing house shall keep all accounts entered in the name of the client of the IPO company, with a statement in its accounts and their records indicating that those imported accounts have been entered by the IPO company, as well as all monthly or quarterly accounts, confirmations and communications concerning funds or securities due under those imported accounts: that the imported accounts were entered by the in-introduction company. that the role of the clearing house is to perform only the clearing functions and related services, which are expressly set out herein, and that the IPO continues to act as a broker for imported accounts. Accidental omission of such information shall not be considered a breach of this Agreement. Copies of the forms that cover the above are set up by the clearing house of the ipo company to be on site. The concept behind clearing member trading contracts allows investors to use different investment options through different brokers or brokers, usually to leverage each broker`s expertise in certain areas of the market. This is not a bad investment strategy. However, where an investor agrees to a clearing exchange, orders are consolidated through a single broker. Consolidation benefits the investor by reducing the time, charge, fees and commissions that must be paid to execute orders. The funds and securities mentioned in this statement are owned or controlled by Merrill Lynch, Pierce, Fenner & Smith Incorporated and not with the investment firm that entered this account with Broadcort Capital Corp., the clearing company. If you have any questions about your account, please contact Broadcort Capital Corp. Customer Service at 212-670-0600 if your entry-level company cannot assist you. 5. The clearing house shall declare and warrant that the names and addresses of the clients of the ies of the ies added to which they are or may be informed in connection with clearing and related functions that it has performed under this Agreement shall be confidential and may be used by the clearing house only in connection with the functions performed by the clearing house under this Agreement.

Notwithstanding the foregoing, if an imported account requests, without being solicited, that the clearing house or an entity related to the clearing house become its broker, the acceptance of such an account by the clearing house or such related body shall in no way violate such guarantee and guarantee, nor lead to a breach of this Agreement. For the avoidance of doubt, such a netting agreement must provide, inter alia, for compensation by LCH SA where Rule 2501A/3(i) is not applicable. Q. Neither party agrees to obtain the prior written consent of the other party, to place or place an advertisement in any newspaper, publication, magazine or other media, or to communicate with a customer or with the public in any way, if such advertising or communication refers in any way to the other party, to a natural or legal person who, directly or indirectly, controls or controls the other party through it, or who is under common control with the other party and to the offsetting agreements and/or any of the services contained in this Agreement. . . .