This is how many intermediaries there can be between the issuer of a security and you.
- Issuer (Company that issued the security, e.g. Apple)
- Transfer agent
- Cede & Co. (DTC nominee - registered holder on the issuer’s books for most street name/beneficial ownership shares, by far the most common)
- DTC (Depository Trust Company)
- DTC participant (usually a large broker-dealer or custody bank with a DTC account)
- Clearing broker / carrying broker (if separate from the DTC participant)
- Introducing broker / retail platform / correspondent broker (optional)
- Custodian bank / RIA custodian platform (optional, common for advisers and institutions)
- Prime broker (optional, for hedge funds)
- Fund / pooled vehicle (optional: hedge fund, mutual fund, ETF, pension)
- Fund administrator / transfer agent for the fund (optional, at the fund layer)
- Retirement wrapper intermediary
- Sub custodian / global custodian chain
- End user / beneficial owner (retail investor, institution, YOU)
Ethereum changes this, it compresses the stack.
