Customer Clearing Agreements Sample Clauses
A Customer Clearing Agreements clause defines the terms under which a customer engages a clearing firm to process and settle trades on their behalf. This clause typically outlines the responsibilities of both the customer and the clearing firm, including the handling of funds, margin requirements, and the procedures for trade settlement. For example, it may specify how the clearing firm will manage the customer's accounts and what happens in the event of a default. The core function of this clause is to establish clear operational and financial protocols between the parties, thereby reducing misunderstandings and allocating risk in the clearing process.
Customer Clearing Agreements. (a) Each Customer Clearing Agreement is valid and binding on each of the Pershing Companies which is a party thereto, and, to the knowledge of the Seller, the counterparties thereto, and is in full force and effect. Except as set forth in Section 3.23 of the Disclosure Schedule, neither the Seller nor any Pershing Company has received any notice that any Correspondent listed on Annex A (i) has ceased, or will cease prior to the Closing, to use the services of the applicable Pershing Company (the “Services”) or, after the Closing, the services of the Purchaser as they relate to the Business, (ii) has substantially reduced, or will substantially reduce prior to the Closing, the use of Services or, after the Closing, the services of the Purchaser as they relate to the Business, or (iii) has sought, or is seeking to reduce, the price it will pay for the Services prior to the Closing, or after the Closing, the services of the Purchaser as they relate to the Business.