A clearing agent is a participant of the Barbados Central Securities Depository Inc (BCSDI) that acts on behalf of an ISM trading participant in interfacing with the BCSDI – they are the intermediary between buyers and sellers of financial instruments.

The Role

The purpose of a clearing agent is to improve the efficiency of the markets and add stability to the financial system.

For more information on the role of Clearing Agents, click HERE.

The Mandate

It is expected that clearing agents shall operate with integrity, competence and capability, and financial soundness.

Review Timeline

The ISM’s Executive Committee is committed to reviewing all ISM Clearing Agent Application Forms within 2 weeks of submission.

Registration Documents

CLEARING AGENT APPROVAL

An applicant for approval as a Clearing Agent on the ISM must file a completed “Application for Participation in the BCSDI as a Clearing Agent” with the Barbados Stock Exchange.

This form can be found under Appendix 3A of the Definitive Guide to being a Clearing Agent on the International Securities Market.

APPROVAL FOR CLEARING AND SETTLEMENT OF ISM SECURITIES

An applicant for participant status in the BCSDI to clear and settle ISM listed securities through BCSDI must file a completed “Application to clear and settle ISM securities through BCSDI” with the Barbados Stock Exchange.

This form can be found under Appendix 3B of the Definitive Guide to being a Clearing Agent on the International Securities Market.

INTERNATIONAL SECURITIES LENDING ASSOCIATION

Parties acting through one or more Designated Offices may enter into transactions in which one party (Lender) will transfer to the other (Borrower) securities and financial instruments (Securities) against the transfer of Collateral with a simultaneous agreement by Borrower to transfer to Lender Securities equivalent to such Securities on a fixed date or on demand against the transfer to Borrower by Lender of assets equivalent to such Collateral.

In all such cases, a completed “Global Master Securities Lending Agreement” must be filed with the Barbados Stock Exchange.

This agreement can be found under Appendix 3C of the Definitive Guide to being a Clearing Agent on the International Securities Market.

For more information, please consult the following:

* Only ISM trading participants and banks approved under Rule 3101.1 (2) may act as clearing agents for other ISM trading participants.