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Friday, 13 September 2013

Types of Memberships in the BSE Derivatives Segment in Stock Market

Trading Member 

• A Trading Member should be an existing Member of BSE cash segment.
• A Trading Member has only trading rights but no clearing rights. He has to associate with a Clearing Member to clear his trades.

Trading-Cum-Clearing Member

• A Trading-cum-Clearing Member should be an existing Member of BSE cash segment.
• A TCM can trade and clear his trades. In addition, he can also clear the trades of his associate Trading Members.

Professional Clearing Member / Custodial Clearing Member:

• A Professional Clearing Member need not be a Member of BSE cash segment.
• A PCM has no trading rights and has only clearing rights i.e. he just clears the trades of his associate Trading Members & institutional clients.

Limited Trading Member

• A Limited Trading Member need not be a Member of BSE cash segment.
• A LTM has only trading rights and no clearing rights. He has to associate with a Clearing Member to clear his trades.

Self Clearing Member

• A Self Clearing Member should be an existing Member of the BSE cash segment.
• An SCM can clear and settle trades on his own account or on account of his client only and not for any other Trading Member.
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