Global Clearing Services and Safe Custody - Benefits

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Global clearing services and safe custody is a term that most individuals in the legal industry are not familiar with. Most individuals would not know where to find information on this topic other than a legal reference. However, it is quite easy to understand what this term means, view custody banking. Global means that the service offers a worldwide presence for any type of trade or transaction. This includes all types of money as well as precious metals and other financial instruments.

There are many major reasons to use global clearing services and safe custody. First, it provides a more stable market for any type of financial instrument. When you are holding a currency from one country and investing it in another, you are trading one currency against another which is often time-consuming and can be costly. This is not the case when you use global clearing services and safe custody to hold all your financial instruments.

Second, global clearing services and safe custody also provide a more liquid market. Money flows around the globe are often in different forms such as dividends, interest income, capital gains, etc. and they need to be liquidated for the account holders to receive their fair share. Global clearing provides custody for these various global instruments to reduce the risk of holding them. Also, it allows traders and institutions the ability to manage their accounts remotely via electronic transfer rather than requiring physical access to their computers.

Third, global clearing services and safe custody allows for faster execution. As any trader knows, it can take days or weeks to manually process each trade and then place it in the correct accounts. When you use global clearing services and safe custody, you can process trades immediately since the trades are automatically placed in the account.

Global clearing services and safe custody also allows for compliance with regulations. For example, one may have a statutory right to deposit a certain amount in their accounts. If they were to do this electronically through a global clearinghouse, the trader would not have access to this money unless they specifically agreed to allow electronic deposit, learn about prime broker. Electronic custody eliminates the possibility of traders opening accounts electronically and then trying to make money out of those accounts.

Lastly, global clearing services and safe custody allow for the transfer of assets internationally. Traders generally prefer electronic funds transfer due to the privacy that electronic transfers provide. Also, since most transactions are settled immediately, there is no need to hold funds in any accounts for an extended period. Finally, these types of accounts offer additional benefits such as higher ROI, increased liquidity, reduced paperwork, and faster settlements. Learn more at https://en.wikipedia.org/wiki/Freight_forwarder