forex, Forex trading

Professional securities market participants

April 14, 2019

Professional participants in the securities market are legal entities and individuals that conduct official business in the securities market.

They can conditionally be considered as 8 conditional groups:

  1. Professional traders .
  2. Brokerage companies that are intermediaries between sellers and buyers.
  3. Dealers – they trade securities solely on their own behalf and at their own expense.
  4. Companies that accept investors’ money in management and trade on their behalf.
  5. Registrars – maintain lists (registries) of securities.
  6. Depositaries – take into account and keep securities, which have authority from market participants.
  7. Clearing organizations – conduct accounting and reporting on trading operations with securities.
  8. Market organizers (for example, the stock exchange) – create favorable conditions for trading securities.

The requirements for professional market participants are to have a license to conduct their activities.

All market participants can also be divided according to another principle into 3 large groups:

  • Investors ;
  • Issuers ;
  • Intermediaries between them.
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Issuers – companies that issue securities and sell them. And investors buy and become new owners.

Professional participants differ in that they have a license and participate in the auction as intermediaries or organizers. Here about them now and talk more.


They make deals with stocks and other securities on behalf of clients and at their expense, but they can act on their own behalf. Depending on the nature of transactions, brokers can be attorneys, commissioners and act by proxy in accordance with the contract .


They trade on their own behalf and at their own expense, publicly announcing prices for the purchase and sale of specific securities with the obligation to buy / sell at announced prices. Be a dealer can only legal entity .

The dealer has the right to declare other significant terms of the contract such as the minimum or maximum number of securities in a transaction, the validity of the current price.

Securities fiduciary activity

Below we will talk about trust management. Such market participants are called managers. This does not require a license.

In this case, the trustee operates :

  • stocks, bonds and other securities ;
  • money that is entrusted to invest ;
  • money and securities that are acquired in the process of trust trading .


They provide services for the storage, calculation of the results of transactions or the transfer of rights to the paper. Their activities are governed by the contract.

Keeping a register of owners of securities

Those who keep registries are called registrars or registry holders . They collect, record, process and store data in registers, and also provide information to the owner of the securities. Only legal entities can do this.

Registrars do not have the right to trade in issuer’s securities if their owners are listed in the registries they maintain.

Registries are lists of registered holders of shares, bonds and other securities, which indicate the number of securities, the category and their nominal value.

Clearing services

Clearing organizations undertake to collect, verify and correct information on mutual obligations, to conduct calculations for the supply of securities.

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Intermarket and intramarket participants

Intermarket participants coordinate or serve the work of several financial markets simultaneously. These include investment groups that invest in different assets – currency, real estate, securities. They also include agencies and private specialists providing information services to market participants .

By intramarket participants are those who mostly work in the securities market. They can be both professional market participants and non-professional.

Can professional activities in financial markets be combined?

Easily, but in the framework of legal acts.

For example: the law does not allow combining the maintenance of the register with other professional activities in the financial market.

cially brokers, dealers, depositaries and managers may well carry one organization .

Depositaries can combine their activities with the functions of a clearing company.

Control over professional market participants

On the territory of the Russian Federation, the work of professional market participants falls under the control of the Bank of Russia, which issues 2 types of licenses:

  • license that allows you to be a professional participant in the securities market
  • license to bid

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