Many brokers says the buyer of debentures pays the seller. Does that apply to exchange traded debentures. " the buyer of debentures pays the" accrued interest" of the seller, what if that note been traded hundreds of time. The company says the interest is paid to the registered owner of the debenture 5 business day before interest payment date. There is no information in regards to how debentures are traded or cleared by the clearing firm or exchange. I think the lack of regulation in the exchanges and industry is the rules are vague and too complex and they keep changing it. or unqualified staff. too much vague legal contracts. terminology. How is the net amount from buy or sell order in a person account settled. Does anyone know? What if the debenture no longer pays interest. how can the buyer pay interest to the seller. The exchange has vague and unclear rules. I spoke many customer service reps at the broker and they dont' have clue and with regulators. the trades are like manually entered.