SIE practice questionmediumClearing and Settlement
Which organization serves as the primary clearinghouse for securities transactions in the United States?
- AFINRA
- BThe Securities and Exchange Commission
- CThe Federal Reserve
- DThe Depository Trust & Clearing Corporation (DTCC)✓ Correct answer
Explanation
Why D — The Depository Trust & Clearing Corporation (DTCC)
The DTCC (Depository Trust & Clearing Corporation) is the primary clearinghouse for U.S. securities transactions. It provides clearing, settlement, and custody services. The DTCC processes trillions of dollars in securities transactions daily. The Federal Reserve handles bank reserves and monetary policy, FINRA regulates broker-dealers, and the SEC provides overall securities regulation — none of these clear trades.
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