Common use of Responsibility to Accept or Reject Trades Clause in Contracts

Responsibility to Accept or Reject Trades. Clearing Agent shall execute transactions in customers’ accounts and release or deposit money or securities to or for accounts only upon Introducing Firm’s instructions or the instructions of Introducing Firm’s clients’ investment advisors. Clearing Agent reserves the right to accept written or oral transaction orders from Introducing Firm’s customers in circumstances where it determines that either (i) the customers are unable to execute those transactions through Introducing Firm or (ii) Clearing Agent is required to do so by applicable or relevant law. Notwithstanding any instructions to the contrary, Clearing Agent may, after notifying Introducing Firm orally or in writing: (i) refuse to confirm a transaction or cancel a confirmation; (ii) reject a delivery or receipt of securities or money; (iii) refuse to clear a trade executed by Introducing Firm; or (iv) refuse to execute a trade for the account of a customer or Introducing Firm.