What function does a carrying firm perform?

The carrying firm plays a crucial role in the securities industry by managing customer accounts and executing trades on behalf of those customers. This involves handling all administrative functions related to trades, including the settlement process and maintaining accurate records of transactions. Carrying firms ensure that customer assets are safeguarded and that trades are processed efficiently and in accordance with regulatory requirements.

Additionally, by managing the client accounts, carrying firms provide vital support to brokerage firms, enabling them to focus more on client relationships and investment strategy rather than on backend operational tasks. Their role is central to the trading ecosystem, as they help facilitate transactions and ensure the smooth operation of the markets for investors.

Other options describe functions that are not related to the primary duties of a carrying firm. For example, simply accepting customer funds does not encompass the broader responsibilities of managing trades and accounts. Similarly, overseeing company operations relates to broader corporate governance and management, while conducting market research pertains more to advisory and informational roles rather than the direct execution of client transactions.