In which cases clearing activity is performed on the market
Clearing activity on the market is a procedure for releasing payment obligations between subjects. A concept for the securities market is used. In simple words – this type of operation allows not paying for the transaction in cash, if this point is agreed by the counterparties and the method of settlement is accepted.
The first place where clearing activity on the market starts is the subject of the transaction. After the contract between the buyer and seller is made out, which allows the transaction to purchase assets of one party and the receipt of money by the other. But this example is ideal, which is almost never met. Most often the seller and the buyer do not cooperate directly, all functions are taken over by intermediaries. The duties of the latter include the organization of the procedure of registration of the transaction and guarantee compliance with the agreements.
Digital solutions simplify the trading process by accelerating the processing of large amounts of data. Special programs automatically register and record transactions, maintain a register of commitments, their warranty and a number of other important information.
Exchange members are companies and individuals from around the world who trade in goods, securities or services.
The purpose of clearing activities in the market is the calculation and control of the obligations assumed. The transaction should be executed taking into account the peculiarities of payment repayment. The regulator of clearing activity is the Federal Law. One of its conditions is to obtain a license from the Central Bank. In addition, the law sets out the types of activities that prohibit companies from clearing. Another important factor is considered capitalization – for this type of procedure it must be at least 100 million rubles.
Features of clearing operations
The concept of clearing operations includes compensation transactions. They can be complete, partial or without collateral. At the first variant the probability of financial losses is practically reduced to zero. For this purpose there should be a necessary amount of funds on accounts of participants of the transaction. In case of partial maintenance the parties can have only a part of necessary money on the account or confirmation from other contracts.
Without collateral assumes transaction realization, even if on the account there are no means. But such a variant of compensatory transactions has a high risk level.
There are several types of clearing activities:
- simple clearing. In this case the liabilities calculation is performed separately for each transaction and its participants;
- multilateral – duties are calculated jointly for the parties;
- centralized – transactions pass through the accounts of the clearing company, which has the same rights as the participants of the transaction.
Different types of clearing can be combined with each other, and the intermediary company itself chooses what option to use in this situation.
