What does clearing mean? NCC Clearing Rules. Main types of clearing

22.09.2019

Clearing companies - English Clearing Firms sometimes referred to as clearing houses or clearing corporations, are a type of business that provides settlement and clearing services for various types of financial transactions. Clearing companies operate within the framework of the laws and regulations of the government and other regulatory authorities of the jurisdiction in which they are registered. In some countries, clearing companies offer a wide range of services; in others, their activities may be significantly limited by law.

Typically, clearing companies can handle all types of financial transactions, including investment activity. They act as an intermediary in financial derivatives transactions such as futures or options trading. In addition, they provide a mechanism that allows for a wide range of translations cash between local and foreign market participants.

Clearing companies also service financial transactions that allow individuals and businesses to arrange automatic payments to merchants or creditors on a revolving basis. For example, an individual may sign an agreement with a utility company that gives them the right to automatically withhold monthly payment directly from the current account. In this case, settlements between them will be carried out through an intermediary - a clearing company, which will process invoices issued by the utility company and transfer the required funds. Automated mortgage payments, donations to charities and other non-profit organizations, and membership dues are also processed through clearing companies.

When carrying out investment transactions, clearing companies are involved at every stage of their implementation. They process not only the purchase order, but also ensure delivery of the purchased investment. By verifying that payment and delivery have been completed in in full in accordance with the terms of the agreement, the clearing company guarantees the flawless execution of transactions. For example, on the stock exchange, these functions are completed within seconds, allowing sellers to receive funds immediately and investors to immediately gain control of their shares.

Clearing companies also provide excellent documentation of every phase of any transaction. This makes it possible to use accumulated data to review and analyze the execution of each step of any operation, including exact date and the time, as well as the moment of the beginning and end of the operation. This can be extremely valuable information when parties disagree over the details of a particular transaction.

Clearing– this is an activity that is aimed at relaxing the payment system between partners who have entered into a cooperation agreement.

This term comes from English word"clearing", which means "to clean". In the field of commerce, clearing plays an important role in the manipulation of securities and shares.

Clearing in simple words

If we talk in simple words, then this is a certain exemption from payment by cash payments, which was accepted by a special agreement between the two interacting parties. It is based on mutual partnerships between entities and has certain requirements when working with internal and external payments.

Clearing happens:

interbank type;
interstate type;
clearing between organizations.

When working with international companies, clearing acts as a compensatory transaction, where the clearing entity takes over the contractually defined tasks of the acquirer and the seller for the subsequent execution of orders for both parties.

The continuous operation of banking organizations requires the “cleaning” of the obligations that they have. Clearing firms are intermediaries in concluding this type of arrangement. Such firms can carry out work on behalf of the state or on their own behalf, having received a license and permission to operate.

History of development

The history of clearing development begins in the middle XVIII century in England, when there was a shortage of gold. A little later, against this background, it began to develop credit system and implement various ways to cover them. With each subsequent year, the number of loans increased, so the state began to look for ways to control this developing trend.

At the end of the 18th century, the first clearinghouse opened in the capital of England. Over time the company of this type began to open in the United States of America, France, Germany and others developed countries. IN Russian Empire The role of the settlement house was played by the State Bank.

Clearing is also a kind of financial procedure where the clearing entity is an intermediary, taking on the responsibilities of both the seller and the buyer at the same time so that the procedure for ordering goods between organizations is more efficient.

Also, the clearing procedure can be performed when concluding trade agreements for settlement pricing policy when determining the number and type of goods, payment agreements. These agreements are needed to describe the rights and obligations between the parties, as well as for balance balance sheet for various types of operations.

In Russia, clearing organizations are opened thanks to any public or private property that is sold through a commercial form of activity. But there are some institutions that do not operate on commercial grounds.

An example can be given in this case: an enterprise under a contract is engaged in the supply of cotton products to another enterprise at a cost of 250 euros per ton, another enterprise must provide a machine for 2500 euros. It turns out that during the delivery process, one partner must provide 400 tons of cotton products, and the other must provide 20 cars. With such relationships, it is clear that equality of payment transactions is observed and there is no need to pay in money.

Types of clearing

There are several types of clearing:

Clearing always has a license to carry out work in the financial sector. All work of clearing organizations is carried out under the supervision of the Central Bank or the clearinghouse. The clearing company is a legally registered entity.

An integral element of clearing is netting. This is an activity where the client's monetary demands are calculated against his monetary responsibility. After determining the netting amount, the money remaining after paying all expenses (if any) is calculated for any client. These funds are paid to the enterprise whose profitability is higher.

Bank Vir in Switzerland and European Standard Bank in Panama - financial organizations, which provide the opportunity, using their own clearing organizations, to carry out clearing settlements for any company that is involved in the production process. In addition, you can get a clearing loan from them - money that is used only within clearing bank accounts. It is capable of replacing almost 100% of the funds that are subject to new issue.

Such loans are approved for small interest rate(1-7% per annum). At times, repurchased clearing assets are used as collateral during the loan period. The organization must complete training with these banks for further successful work in the field of clearing operations.

Participants

Participants in the clearing process are:

To effectively establish and promote positions of valuable excise taxes in market conditions, the place of the main founder of sales can fall on a company that is created from professional participants, knowledgeable in this market area. Similar unions are based solely on a voluntary basis.

Clearing of securities works gradually, without sudden upward surges.

First of all, the stock exchange signs an agreement with the help of an intermediary.
Next, all stages and terms of the agreement are clarified in detail, all the main indicators, cost, time intervals, etc. are described in detail.
Afterwards, the agreement goes through a registration process, where mutually beneficial terms are officially accepted.
The next stage is the mutual settlement of the obligations of the parties, where it is determined who is responsible for the services of the intermediary, the commission for the exchange and other representatives of the market environment.
On last stage All services provided are paid in full.

In the field of banking organizations, clearing intermediaries are chambers and settlement centers. Clearing houses are the main effective levers of the economic sector, which are independent organizations. She independently accepts the rights and obligations specified in the contract, which allows her to reduce risk situations and provide certain guarantees for a successful outcome.

If the settlement chamber is a branch of the exchange, then it is the controlling body of all related work. It turns out that in in this case it is the exchange that will provide a guarantee for the concluded agreements. The chamber also has the full right to act as an independent body by registering itself as a legal entity. In such a combination of circumstances, the chamber and the exchange will cooperate only on the terms of the agreement. A clearing organization of this type has the ability to enter into contractual relations simultaneously with an indefinite number of exchanges.

Clearing Process

At the moment when the intermediaries have registered the contractual relationship, clearing begins to operate. All clearing work has a specific meaning, where step-by-step implementation takes place new registration from one owner of value to another. This process looks like this:

registration on the stock exchange;
confirmation;
valuables and funds are transferred to the exchange with the help of intermediaries;
re-registration is carried out under the new owner;
re-registered values are returned to the exchange;
newly registered values are transferred through intermediaries to new owners.

Clearing work is one of the main levers of influence on the fund and currency market. With its help, the amount of money between all participants in the process is brought to a minimum. The guarantee of a successful outcome when using clearing provides efficiency and mobility in the market.

During a crisis, clearing may go beyond its usual use and begin work in the form of compensatory transfers, additional ways payments, etc. These actions help cover the cash deficit when issuing new money, which is a positive factor during times of crisis.

These manipulations were first used in Switzerland at the Vir bank at the beginning of the twentieth century. This allowed a large number of law firms to cope with critical consequences in the financial sector, as well as increase their own turnover and profitability at a time when other companies were forced to reduce own indicators, and were a few steps away from ruin.

The concept of clearing activity has existed in the world not so long ago, but has already contributed effective development and promoting a large number of organizations and companies. How certain type barter, clearing helps in conditions of market instability and stock exchanges to stay afloat and increase production efficiency, profitability and profitability indicators. Such agreements are always concluded on a voluntary basis and have state registration, where all points of current legislation are observed within the country or between several states.

1. The clearing organization can only be business society created in accordance with the law Russian Federation. The clearing organization has no right to delegate the powers of the sole executive body to another person (manager, management organization).

2. The requirements established by this Federal Law for a clearing organization apply to the central counterparty.