A custodian is an entity that holds the documentary evidence of the title to property that belongs to an investor, such as share certificates, for safekeeping. In a clearing corporation, a custodian is a clearing member and not a trading member. The custodian settles trades assigned to him by trading members and is required to confirm whether he is going to settle a particular trade or not. If it is confirmed, the clearing corporation assigns that obligation to that custodian and the custodian is required to settle it on the settlement day. If the custodian rejects the trade, the obligation is assigned back to the trading member.