SIE EXAM INCLUDES QUESTIONS ON DEPOSITORY CLEARING CORPORATIONS, SO BE PREPARED!

Planning to take the Securities Industry Essentials (SIE) exam soon? Be prepared for questions asking about depository clearing corporations.

Can you say in one sentence the purpose and function of the Depository Trust & Clearing Corporation (DTC)? No response? Then you are like most SIE candidates, so don't feel too bad!

Bob Eder's Study for the SIE Exam covers the definition and functions of the DTC, as well as the Options Clearing Corporation and ACATS.

Here is a section from Bob Eder's book taken from page 12:

Depository Trust & Clearing Corp. (DTCC) (1.1.4) 

"The Depository Trust provides clearing and transfer services to the brokerage industry in the U.S. and throughout the world. With volume of securities trades approaching millions on a daily basis, imagine brokerage operations without a centralized entity that could match buys with sells, and keep brokerage firm back offices running smoothly and efficiently. What chaos without an organization like the DTCC! What does the DTCC do? DTCC automates the recording of each trade and gives an exact report to each participating exchange. It also reports customers' positions in each of their securities to each brokerage firm. DTCC has subsidiaries: the National Securities Clearing Corporation (NSCC) and the Fixed Income Clearing Corporation (FICC). ACATS Another division of the DTCC is the Automated Customer Account Transfer Service (ACATS). It facilitates the transfer and sales of many different types of assets among and between brokerage firm customers, showing which customer has sold and which has purchased, as well as cash positions."

In the above selection, note the numbers to the right of the heading, ("1.1.4") . They refer to FINRA's Content Outline for the SIE exam. They set forth the topics that FINRA has included in creating the SIE exam. These numbers are your protection that Bob Eder's Study for the SIE Exam does not include extraneous or non-necessary filler.

Here is the link to FINRA's Content Outline for the SIE exam.

Study for the Securities Industry Essentials (SIE) Exam is available from Amazon in both paperback and Kindle e-book versions. 

Here is the link to Bob Eder's book on Amazon.

Bob Eder received his Juris Doctor (J.D.) degree from the University of Utah, Quinney College of Law in 2001.

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