What is the difference between a Trading Participant and a Clearing Participant?

An ASX Trading Participant and an ASX Clearing Participant are different roles within the Australian Securities Exchange (ASX) ecosystem:

1. ASX Trading Participant:

An ASX Trading Participant refers to a member or a firm that has the authorisation to execute trades directly on the ASX trading platform. They can place orders and execute transactions on behalf of themselves or their clients.

These Participants are primarily involved in the buying and selling of securities on the ASX.

ASX Trading Participants are subject to the ASX Operating Rules, Procedures, Schedules and Appendices.

2. An ASX Clearing Participant:

An ASX Clearing Participant is a member or a firm that is authorised to clear and settle transactions through the ASX Clearing House. They are responsible for submitting trades to the Clearing House, which then matches and reconciles the trades, calculates obligations, and manages the associated risks.

ASX Clearing Participants play a crucial role in ensuring the smooth and secure settlement of transactions executed on the ASX platform.

ASX Clearing Participants are subject to the ASX Clearing Rules, Procedures, Schedules and Appendices.

Cboe does not have Clearing Participants. Cboe is an alternative trade execution venue only.

Both types of Participants are important for the functioning of the Australian Markets. Trading Participants focus on the executing of trades, while ASX Clearing Participants are responsible for the clearing and settlement processes. Some firms may have roles, allowing them to handle the entire process from trade execution to clearing and settlement.