Canadian Securities Course (CSC) Practice Exam

Which part of an organization is primarily responsible for settlements and clearing processes?

1. Front office

2. Back office

3. Middle office

4. Trust company

The correct answer is: Back office

The back office is the part of an organization that handles settlements and clearing processes. This includes tasks such as reconciling trades, managing and administering securities holdings, and ensuring accurate record keeping. The front office is typically responsible for generating revenue, and the middle office focuses on risk management and compliance. A trust company typically deals with managing assets and providing trust services for clients, but it is not directly responsible for settlements and clearing processes. Therefore, B is the correct answer.