Me too interested to know According to the following link, one needs $100,000 to $150,000 and much paperwork: https://www.investopedia.com/articl.../steps-starting-independent-broker-dealer.asp See also https://centerpointsecurities.com/clearing-firms-guide/
OCC provides central counterparty clearing and settlement services to multiple exchanges and platforms for options, financial and commodity futures, security futures and securities lending transactions. OCC clearing members comprise approximately 105 of the largest U.S. broker-dealers, futures commission merchants and non-U.S. securities firms that serve both professional traders and public customers. Begin Membership Process Benefits of OCC Membership include: Financial guarantee and safeguards mitigate counterparty credit risk Utility model allows for low transaction fees Cross-margin facility provides margin offset Central processing across multiple exchanges allows for single interface Direct access to reports allows greater control of operations and margins Fungibility across U.S. listed options market Resilient technology (Internet-based, real-time ENCORE clearing system) World Class customer service Requirements of Membership Applicant must be a broker dealer or FCM registered with the SEC or CFTC, or a non-U.S. securities firm. Applicant must meet minimum net capital requirements (initial requirement is a minimum of $2,500,000. Applicant must have qualified staff and adequate facilities to self-clear options and interface with OCC and other Clearing Members (or contract for a facilities management arrangement). Documentation Must Enter all Applicable Information into the OCC Pre-Qualification Online Application Must submit appropriate paperwork received from Pre-Qualification FOCUS Reports Audited Financial Statements The Findings of Securities and Commodities Regulators $4,000 Non-refundable Qualification Fee Resumes of Staff Responsible for P&S, Positions Reconciliation and Margin Site Visit The Credit Risk and Member Services Departments conduct an on-site visit at the firm. The visit addresses financial and operations requirements of OCC. Approval The Applicant's Designated Examining Authority (DEA) and/or Designated Self-Regulatory Organization (DSRO) is contacted for pertinent information that OCC should consider during its due diligence review. The due diligence of the Applicant and any findings associated with the applicant are submitted in a memo to the Board Risk Committee for review. If a request is not made to review the application at an upcoming meeting of the Board Risk Committee, the Office of the Executive Chairman maintains delegated authority to approve or disapprove the application. Interested Applicants are directed to OCC's By-Laws (PDF) and Rules (PDF) for exact requirements and corresponding interpretations. If you would like to apply for OCC Membership the first step is completing our Pre-Qualification Online Application. Schedule of Fees Clearing Member Clearing Clearing Fees Trades with contracts of 0-1,222 $0.045 Trades with contracts of greater than 1,222 $55.00/trade New Products Unless otherwise agreed to by OCC and the applicable exchange, from the first day of listing through the end of the following calendar month $0.00 Linkage per side $0.02 *A Linkage transaction that includes more than 2,750 contracts will be charged a flat fee of $55.00 per trade per side. Minimum Monthly Clearing Fee $200.00 Exercise Fee — per line item on exercise notice $1.00 Membership New Clearing Member Qualification Fee $4,000.00 Stock and Market Loan Program Transaction Fees Per transaction assessed against each lender and borrower $1.00 Stock and Market Loan Program Borrower Fees Monthly annualized charge on average daily notional outstanding balance 0.4 basis point Stamps Clearing Member Authorization Stamp $23.00/stamp Ancillary Services Per Month TIER I $1,500.00 ENCORE Access • MyOCC Access • Data Service - proprietary position and trade data (includes transmission to service bureau) • Report Bundle • Series File • Special Settlement File • Open Interest File • Prices File • Stock Loan File • Theoretical Profit and Loss Values • Leased line charges are additional TIER II $1,000.00 ENCORE Access • MyOCC Access • Data Service - proprietary position and trade data (includes transmission to service bureau) • Report Bundle • Leased line charges are additional TIER III $650.00 ENCORE Access • MyOCC Access TIER IV (Stock Loan only) $300.00 ENCORE Access • MyOCC Access Additional Clearing Member No Charge Leased Line Service Destinations Per month, per line Midwest $1,000.00 East Coast $1,500.00 West Coast $2,000.00 Cash Management Fee Monthly annualized charge on Clearing Member's average daily cash balance in OCC's Federal Reserve bank account. 5 basis points Operational Loss Fee Maximum Operational Loss Fee** $141,866,667.00 less the aggregate amount of Operational Loss Fees previously charged and not refunded as of the date calculated, divided by the number of Clearing Members at the time charged. ** OCC would charge the Operational Loss Fee if OCC's shareholders' equity falls below $222,000,000.00 at any time or falls below $247,000,000.00 for a period of 90 consecutive calendar days. If less than the maximum Operational Loss Fee is needed to return OCC's shareholders' equity to $272,000,000.00, OCC will charge only that amount. OCC Capital Management Reporting Unaudited as of June 30, 2020 Full Year Projection (in millions) Fcst Bgt B(W) Operating Income 1 $284.5 $143.2 $141.3 Average Daily Contract Volume 25.2 19.0 6.2 Liquid Net Assets Funded by Equity 2 $456.8 $272.0 $184.8 1 Operating Income represents net income before taxes 2 Liquid Net Assets Funded by Equity represents cash and cash equivalents less cash payable to the Securities and Exchange Commission for Section 31 Fees Total Equity $512 Early Warning $272 Target Capital $247 Trigger Event $222 Clearing Member & Non-Clearing Member Publications Disclosure Documents $0.45 OCC/ICC By-Laws and Rules Updates can be obtained on a subscription basis for $47.00 per year. Non-Clearing Member Series Information Per Month Non-Distribution $1,750.00 Distribution $3,000.00 Real Time Data (in addition to fees listed above) $250.00 Prices Information $3,000.00 Theoretical Profit and Loss Values $1,000.00 Figure OCC alone about $5,000,000 to start unless you subcontract facilities and the clearing crew - $2.5 million net capital. You'll still need exchange(s) access.
You would have to start your own broker-dealer and become a member of that exchange. I'm not going to go into the details because it requires more than money.
Let me guess...You can't make money trading stocks because you feel the brokers you use are not routing your orders properly, so you'd rather beat them by becoming your own clearing house? WOW
No, I guess it's rather about margin requirements, and of course commissions & fees, ie. about money what else? With an own clearing one can increase the leverage by defining own margin requirements very "liberal", ie. setting it to bare minimum possible...
How do you think that would work? It's the broker giving you the margin, not the exchange. How exactly would you give yourself leverage?