Pool Account

A pool account serves as an intermediary settlement account held by a broker or exchange member. It enables the broker to deliver securities or commodities to the clearing corporation of the exchange, fulfilling their pay-in obligations. Additionally, the broker can receive payouts of securities from the clearing corporation through this account.

How do the pay-in and pay-out process work with a member pool account?

The pay-in and pay-out process with a member pool account is explained hereunder.

Pay-In Process

Trading members and/or clearing members transfer funds and securities from their clients or their own accounts to the Member Pool Account.
These funds and securities are consolidated in the Member Pool Account, simplifying the process of fund and security transfers.
The pay-in process ensures that sufficient funds and securities are available to meet the obligations of the trading members and clearing members.

Payout Process

When trading members or clearing members have obligations to settle, such as delivering commodities or making payments, they use the funds and securities available in the Member Pool Account to fulfill these obligations.
The commodities or funds are transferred from the Member Pool Account to the respective clients or entities involved in the transactions.
This facilitates smooth and timely settlements, as the required funds and securities are readily available in the Member Pool Account.