Abstract
The process of clearing and settling a securities trade includes several key steps1: the confirmation of the terms of the trade; the calculation of the obligations of the counterparties resulting from the confirmation process, known as clearance; and the final transfer of securities (delivery) in exchange for final transfer of funds (payment) in order to settle the obligations. Each of these steps can typically be accomplished in one or more ways. In addition, other important activities may take place within or ancillary to each of these steps. Such activities include the communication of settlement instructions to central securities depositories and to custodians which many investors employ to safekeep their securities, and the registration of the ownership of shares. The entities providing these services are generally called securities clearing and settlement systems.
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Notes
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Schönenberger, A. (2002). Resharping the European Securities Industrie. In: Schäfer, HB., Lwowski, HJ. (eds) Konsequenzen wirtschaftsrechtlicher Normen. Ökonomische Analyse des Rechts. Deutscher Universitätsverlag. https://doi.org/10.1007/978-3-322-81426-5_7
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DOI: https://doi.org/10.1007/978-3-322-81426-5_7
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