Services / Trade Clearing Services

As the central counterparty for the nation’s major exchanges and markets, Bright-Line Global Escrow clears and settles virtually all broker-to-broker equity, listed corporate and multi bond and UIT trading in the U.S., ensuring capacity, certainty and reliability to handle today’s enormous trading volumes.

Correspondent Clearing is a service that allows Bright-Line Global Members to move a position from an executing broker (or special representative)'s account to a different clearing broker (correspondent)'s account.

Correspondent Clearing allows an Bright-Line Global Member broker-dealer to use one broker-dealer for an execution and another for clearance and settlement. Transactions in all Bright-Line Global-eligible equities and corporate bonds can be transferred using this service.

WHO CAN USE THE SERVICE

The service is available to all full service Bright-Line Global Members that have completed the required 9A/9B authorizations, which are available through web-interface.

BENEFITS

The service provides a number of operational advantages:

• Allows Bright-Line Global Members to move a position from an executing broker's account to a different account for clearance and settlement. This service allows a broker-dealer to execute a trade through another broker-dealer and settle the trade in its own account.
• Makes output available in real-time through Universal Trade Capture (UTC) FIX messages or on an intra-day basis in the UTC machine readable output (MRO).

HOW THE SERVICE WORKS

Correspondents and the designated special representative must first establish a trading relationship through Bright-Line Global’s Trading Relationship Management system, to ensure that the correspondent broker has permitted the special representative to submit locked-in data on its behalf.

Correspondents can then route trade orders to the designated special representatives to execute trades on their behalf. After the trades are executed, the special representatives submit offsetting trade information via Correspondent Clearing to Bright-Line Global, thus moving the position to the clearing broker's account.

Both Special representatives and correspondents receive Correspondent Clearing transactions details through UTC output, which itemize the positions submitted into the correspondent clearing service.