We offer clearing, settlement and custody in global markets and across multiple asset classes. Model A agreements use a contract for intermediation and custody services between the client and the broker and a subcontract for custody services between the broker and the custodian bank. Unlike Model B contracts, payments range from the deposit bank to the broker and from the broker to the client. The deposit bank does not report anything unless the broker is an individual or a partnership. The broker only reports revenue streams to the client if the client is an individual. When 7IM commenced operations, we partnered with Pershing Securities Limited (“PSL”) under a so-called “Model B” agreement. This means that PSL has a direct contractual relationship with all 7IM customers to provide custody and resolution services. The terms of this service are included in the general conditions of sale that all 7IM customers contract when establishing a relationship with us. Our custody solution includes the protection of clients` money and assets in accordance with ACF rules for client assets, with assets that can be held separately and not subject to transfer of ownership. If the future is volatile, a short-term lens is the right way to go.
Instead of focusing on successive solvency indicators, such as last year`s tax returns, it is much more productive to look at what exactly is happening in business. Making credit decisions based on real-time cash flow and adhering to short-term agreements is the best way to reduce exposure and reduce risk. And when it comes to managing smaller amounts of credit over shorter periods of time, small business customers can be ideal targets. Even under stable market conditions, small businesses tend to need more modest credit and, as a rule, use it to meet immediate short-term business requirements. By sticking to short-term needs, lenders are not content with small short-term customers, but adapt credit processes to better adapt to the business models of small business customers – a mutually beneficial reward. Model B Clearing contracts include a contract for intermediation services between the client and the broker and a custodial services contract between the broker and the custodian bank. Revenues range from the deposit bank to the customer and the custodian bank is responsible for reporting income streams to individual customers. Model B clearing agreements are a kind of clearing exchange agreement (CMTA) used by investors and their brokers. There are a number of differences between Model B chords and Model A chords. Thanks to the flexibility of our templates, you can quickly scale up or down as your needs change.
Compensation agreements are divided into two categories: bilateral trade agreements and trade compensation agreements. Member clearing agreements allow an investment broker to represent their client and select the brokers that participate in the agreement. These agreements allow investors to use a large number of investment options through different brokers, while consolidating trading orders through a single broker. We work on a main basis without risk; We do not have an ownership position. Our full-service model reduces counterparty and supplier risk. GPP provides compensation for equities and fixed income on a Model A basis. This means that as an agent in the marketplace, we act as a commercial intermediary and grant you access to global resolution and custody markets through our connectivity to several industry-leading sub-custodians. You can outsource the entire lifecycle of a trade, from execution to custody – or any part in between – or any part in between.