Form CRS

Customer Relationship Summary

Introduction

Interchange Clearing LLC (“Interchange Clearing” or the “Firm”) is registered with the U.S. Securities and Exchange Commission (“SEC”) as a broker-dealer, member of Financial Industry Regulatory Authority (“FINRA") and the Securities Investors Protection Program (“SIPC”). Brokerage and investment advisory services and fees differ and it is important for you to understand the differences. Free and simple tools are available to research firms and financial professionals at: www.investor.gov/CRS which also provides educational materials about broker-dealers, investment advisers and investing.  

Interchange Clearing is a clearing broker-dealer that provides execution, clearing, settlement, custody, and recordkeeping (together, the “Clearing Services”) for broker-dealers, investment advisers and other financial institutions. Interchange Clearing does not provide advisory services, investment advice or tax advice. Your primary account relationship is with your financial services provider that is servicing your account (the “Correspondent”); therefore, our services and relationship with you is limited. This Client Relationship Summary document discusses those services and relationships.

What Investment Services and Advice Can You Provide Me?

We provide Clearing Services only. This includes execution, clearing, settlement, custody, and recordkeeping services supporting fully disclosed and omnibus arrangements, as directed by your Correspondent. We do not provide investment advice or recommendations and do not have discretionary authority over your account.

What Fees Will I Pay?

Pass-through fees may apply in connection with securities purchases and sales, or based on securities held in your account. These fees are generally regulatory, tax, or third-party fees and are passed through to you unless your Correspondent elects to cover them. Applicable transactional fees are disclosed on trade confirmations or account statements, as appropriate. These fees can be in addition to commissions and fees charged by your Correspondent.

• Fees that are assessed on a transactional basis may include: Securities buys and sells which may include FINRA TAF Fees (Trading Activity Fee), SEC Sell Fees (Section 31), CAT Fees (Consolidated Audit Trail), ADR (American Depositary Receipts) Fees

• Money movement fees

• Account (ACATS) transfers

Fees and requirements may vary depending on your Correspondent.

Your Correspondent may charge fees separately, which may include amounts that reimburse them, in whole or in part, for clearing-related fees assessed under the Clearing Agreement they have in place with us.

Important

You will be responsible for applicable fees and costs whether you make or lose money on your investments. Fees and costs reduce the amount of money you earn on your investments over time. Please make sure you understand the fees and costs that apply to your account.

What are your legal obligations to me when providing recommendations?  How else does your firm make money and what conflicts of interest do you have?

Broker-dealers and investment advisers are required to act in the best interests of retail investors when making recommendations.

Because of our role as a clearing broker-dealer, the way we make money differs from the way your Correspondent makes money. The ways we make money may create conflicts, which you should understand and ask about as they may affect our services to you. Your Correspondent establishes the commissions and fees associated with the services they provide to you.  

Here are some examples of ways we make money as a clearing broker-dealer

• We may receive compensation from your Correspondent for Clearing Services we provide to them.

• We may receive cash compensation from third parties in connection with certain transactions or services, such as compensation related to order routing arrangements with market centers or the distribution of shareholder communications and materials.

• We may receive compensation related to customer cash balances or investments in registered investment products, including compensation derived from distribution, servicing, or expense components of those products.

These compensation arrangements, including compensation related to order routing, may create incentives related to the services we provide as a clearing broker-dealer. However, we do not provide investment advice or make recommendations to retail investors.

How do your financial professionals make money?

As a clearing broker-dealer, we do not employ financial professionals who provide recommendations or maintain direct relationships with retail investors. Accordingly, we do not earn compensation based on recommendations in retail investor accounts.

Our financial professionals include registered and non-registered representative employees that perform the functions necessary to clear and settle transactions for our Correspondent clients. They are compensated through salaries, hourly wages, or other fixed compensation structures. Their compensation is not tied to transactions in retail investor accounts, including yours. 

Do you or your financial professionals have legal or disciplinary history?

No. Free and simple search tools are available to retail investors. You may visit www.investor.gov/CRS and https://brokercheck.finra.org to research our Firm and our professionals.

For additional information about Interchange Clearing, go to www.interchange.com. 

If you would like to request a copy of this relationship summary, please email compliance@interchange.com.