SIE practice questionmediumDTC and Clearing
The Depository Trust Company (DTC) performs which of the following functions?
- ARegulates broker-dealer activities
- BSets interest rates for bond issuers
- CApproves new securities offerings for listing on exchanges
- DHolds securities in book-entry form and facilitates settlement✓ Correct answer
Explanation
Why D — Holds securities in book-entry form and facilitates settlement
The DTC is a central securities depository that holds securities electronically and facilitates the clearing and settlement of trades. It is a subsidiary of the Depository Trust & Clearing Corporation. The DTC does not set interest rates, approve exchange listings, or regulate broker-dealers.
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