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ssh: which side is running the SOCKS proxy?

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linux-howto

http://serverfault.com – When I set up a tunnel using dynamic forwarding (ssh -D), which side is running the SOCKS proxy? That is, is the proxy running on the local end (client) or the remote end (server)? Here's the situation: I want to set up several tunnels chained together using -L. Should the -D tunnel be the last one in the chain or the first one? Edit: I found the answer to the second paragraph on Super User (the -D tunnel should be at the remotest end). But I'd still like to know where the proxy code is running. (HowTos)