Choosing a broker is an essential step towards operating in the APX stock market. APX brokers are professionals who buy, sell, and trade shares for clients. The main role of APX brokers is to complete any delivery and settlement of transactions required by the client. The tasks of APX brokers go well beyond this main role, however. For instance, APX brokers are also required to perform market analysis and build good relationship with clients.
APX brokers are responsible for the settlement of transactions occurring on the stock market of APX. An APX broker may appoint an agent to perform their settlement obligations, but the APX broker remains liable for any acts or omissions of its agent. Settlement will occur on a T+5 basis unless the parties agree otherwise.
Prior to an APX broker accepting an order from a client to buy or sell securities, they must inform the client of current market information and any material announcements by the listee.
Should settlement not occur on the due settlement date, settlement will be postponed until the fifth business day after the original settlement and the APX broker who transacted on behalf of the defaulting client, is liable to meet the settlement obligations.
The delivery and settlement obligations in relation to a transaction are:
- The selling APX broker must deliver the securities to the buying APX broker by delivering all valid documents necessary for the securities to be registered in the name of the acquirer; and (formatting)
- The buying APX broker must pay the selling APX broker the consideration for the securities.