What service does CDS Clearing provide to its customers?

• A. Physical and electronic facilities for managing securities
• B. Exclusive trading options for large institutions
• C. Facilitation of foreign currency transactions
• D. Only electronic options for trade settlements

Answer: (A)

CDS Clearing plays a critical role in the financial market by providing both physical and electronic facilities for managing securities. This service is essential as it ensures that securities transactions are processed efficiently and securely, whether they are in the form of physical certificates or electronic records. By offering a comprehensive suite of services that encompass the entire lifecycle of securities—from trade execution to settlement and safekeeping—CDS Clearing ensures that customers can effectively manage their securities holdings.

This service is particularly valuable because it encompasses a broad range of activities, allowing for flexibility and adaptability in various market conditions. Physical facilities might include vaults for safeguarding physical securities, while electronic facilities enable seamless tracking and management of electronic assets. The combined offering helps institutional investors and market participants to maintain the integrity and efficiency of their operations.