Clearing Members

Role of Clearing Members

A Clearing Member (CM) of ICCL has the responsibility of clearing and settlement of all deals executed by Trading Members (TM) on BSE, who clear and settle such deals through them.

Primarily, the CM performs the following functions:

  • Clearing: Computing obligations of all its TM's i.e. determining settlement positions.
  • Settlement: Execution of Funds settlement.
  • Risk Management: Setting trading limits based on upfront deposits / margins for each TM.

Types of Clearing Members

  • Trading Member Clearing Member (TM-CM)
    A Clearing Member who is also a TM. Such CMs may clear and settle their own proprietary trades, their clients' trades as well as trades of other TM's & Custodial Participants.

  • Professional Clearing Member (PCM)
    A CM who is not a TM. Typically banks or custodians could become a PCM and clear and settle for TM's as well as of the Custodial Participants.