Jose Miguel Artiles Caballos is the director of Bandenia Formula Capital LTD Explain the role of Financial Intermediaries in Capital Markets. In the capital market, transactions go through three phases ? trading, clearing, and settlement. In any trade, a financial intermediary plays the role of ensuring trust between two parties. For example, when a house is being sold, a real estate broker plays the role of an intermediary who is trusted by both the buyer and the seller. While the process flow is not very complex, the role of financial intermediaries in the capital market is defined to make investors feel secure.