| What is Self Clearing? Diamant Investment Corporation is one of less than three hundred firms in the country that self clear their trades. These firms include stock exchange specialists, large brokerage firms, government bond dealers, and a few independent firms like Diamant Investment Corporation. Self clearing means all aspects of client activity are handled on our premises. This includes the steps from initiating a trade, to the settlement process of the purchase or sale, the safekeeping of positions, to the cash movements needed to smoothly run each account. Also, should a customer need to deposit funds or stock certificates, we take care of this on site. And if there is a sudden need for a check, we disburse directly from our office. No delays, no excuses... just exceptional service.
Privacy. In an age where privacy considerations and confidentiality of our client base are paramount, having a self clearing structure is important to securing client information. In this structure, we keep all customer account information and details of transaction activity within our firm. Whether its confidential client information, or future aspirations of a family, nothing leaves our office. Not to employees of another brokerage clearing firm, nor to some unknown bank employee. What ever is mentioned between Diamant and a client stays confidential.
Anonymous. Sometimes being anonymous makes our trades outstanding. Today's trading desks often trade based on who else they think is buying or selling. Repeated orders by our shareholder may influence stock prices. We are able to bypass these trading desks and move directly to a floor broker. As a self clearing firm, we initiate trades directly to the appropriate market centers without an intermediary to process our activity. This way, no one knows the identity of our client when buying or selling stocks, which is a valuable trait when building or reducing positions for a portfolio. Even the municipal, corporate, and government bond traders that we have dealt with for decades, have yet to learn whether bonds are purchased or sold for a particular client. By self clearing our business, we can improve our ongoing efforts to gain the best execution for our clients for all types of transactions.
Herb Diamant inspecting the Depository Trust Company securities vault,
discussing vault procedures with a security guard.
Safety. Each day all our trades from all market centers are compared through our membership in the National Securities Clearing Corporation, the place where all self clearing firms process their daily activity. Although we retain the capacity to vault securities on premises, custody of our client securities is primarily handled by our membership in the Depositary Trust Company (DTC). As the leading security depositary in the world, we join all the leading investment firms and institutions by holding security positions at the DTC. To protect our clients against potential loss, almost all customer securities are held at the DTC. We rely on their established security handling procedures and their insurance coverage of $650 million against loss or theft. We retain a high level of confidence in our relationship with DTC, as we have performed decades of routine monthly audits of our client positions without exceptions.