MARKET STRUCTURE • GUIDE

Broker vs Stock Exchange

Understand what brokers, exchanges, clearing systems and custodians each do.

An investor normally does not trade directly with an exchange in the same way they interact with a broker.

Broker

Provides the interface and services needed to place orders and maintain the investor relationship.

Exchange

Provides market infrastructure and rules for trading eligible securities.

Settlement

Clearing and settlement systems complete the exchange of securities and cash.

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