SIC 6289 Services Allied with the Exchange of Securities or Commodities, Not Elsewhere Classified

SIC 6289

Services allied with the exchange of securities and commodities, not elsewhere classified, include companies that support financial markets. This industry excludes firms that provide investment advice or offer investment research and management services. Encompassed are a wide variety of companies that offer expertise in a broad variety of miscellaneous activities.

NAICS CODE(S)

523991

Trust, Fiduciary, and Custody Activities

523999

Miscellaneous Financial Investment Activities

Commodity and security clearinghouses are corporations established by an exchange to facilitate the execution of trades. This is accomplished by transferring funds, assigning deliveries, and guaranteeing the performance of all obligations. Member firms regularly submit statements to clearinghouses that indicate a net balance in each security or commodity on the exchange, along with the net amount to be paid or received, to balance the member's account.

A securities' custodian is a company, usually a commercial bank, that holds someone's assets for safekeeping in an account. For a fee, the custodial institution may collect dividends, interest, and proceeds from securities' sales, and disburse funds according to a customer's instructions. A quotation service is a firm that provides statements or listings of the prices at which securities trade. These quotes are often the last prices at which trades took place, but they may also be the current bid or asking price.

Transfer agents are another type of company in this industry. These organizations are usually banks or trust companies and are appointed by a second party to transfer its securities. The agent may also maintain current records of securities owners for transmitting dividends, reports, or securities distributions.

This industry originated in the United States in the early to mid 1800s, during the emergence of various U.S. financial markets. The establishment of the Securities and Exchange Commission (SEC), soon after the Great Depression in 1929, boosted many services. The SEC established various regulations that encouraged, and often mandated, the use of many of the miscellaneous services that now exist. The industry realized rapid growth during the post-World War II economic expansion.

Strong securities markets in the 1990s enabled most sectors of the industry to benefit from very active markets through the end of the century. The Dow Jones Industrial Average...