Market Participants and Their Roles
Chapters in this video
- 0:00 Retail, institutional, and accredited investors
- 1:35 Broker-dealer capacities: broker versus dealer
- 3:06 Introducing, clearing, and prime brokers
- 3:55 Investment advisers, market makers, issuers, and underwriters
- 5:59 Municipal advisors and the Municipal Securities Rulemaking Board (MSRB)
- 6:22 Custodians, trustees, and transfer agents
- 7:38 DTCC versus OCC: clearing and settlement
- 8:33 Rapid-fire exam recap
What this video covers
- The three investor types (retail, institutional, accredited) and why accredited investor net worth excludes the primary residence
- Broker-dealer capacity: broker as agent earning commission versus dealer as principal earning markup or markdown, and why one firm cannot be both on the same trade
- Introducing brokers, clearing brokers, and prime brokers: who holds assets, who clears, and who serves institutional clients
- Investment advisers versus broker-dealers: the fiduciary duty owed by advisers for compensation versus the best interest standard under Regulation Best Interest (Reg BI)
- SEC and state registration thresholds for investment advisers, measured at the firm level not the representative level
- Market makers, issuers, underwriters, and municipal advisors: what each does and who regulates municipal advisors
- The distinct roles of the Depository Trust and Clearing Corporation (DTCC) for equities, bonds, and mutual funds versus the Options Clearing Corporation (OCC) for listed options
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