Cost-Efficient CCP Services
Our systems support a variety of settlement models, markets and a range of derivatives instruments
Clearing & Settlement
A Clearing Member of NG Clearing Limited (the Company) has the responsibility of clearing and settling all deals executed by Trading Members affiliated to it, in accordance with the settlement cycle published by the Company.
The Clearing function of the Company entails crystallisation of obligations of a Clearing Member (member) through multilateral netting that determines settlement obligations which results in either delivery or receipt positions. Hence, for any given settlement, post netting, a member shall either have a pay-in or pay-out position.
Settlement is a two-way process which involves pay-in (obligation to pay) and pay-out (rights to receive) on the settlement date.
- Pay-in of a member – obligation to honour amounts payable/securities deliverable by the member to the Company
- Pay-out of a member – Right to receivable amounts/securities by the member on the settlement date.
In order to handle exceptional situations like shortages and/or any other disputes, the Company has in place, an exception handling mechanism in line with the rules to complete the settlement.
Members pay-in obligations and pay-out rights are determined and notified through settlement reports, which can be downloaded by members to facilitate timely settlement in accordance with the settlement schedule.
Currently, all rights and obligations of members shall be ‘cash settled’.