2. Clearing Meaning:-clearing confirms the identity and quantity of
the
Financial instruments.
SettlementMeaning :-payment to the transaction, of the ob
ligations of the trade
Clearing and settlement activities in the Currency Derivatives
segment are undertaken by a Clearing Corporation with the help
of the following entities
1. Clearing members
2. Clearing banks
3. Primarily, the CM performs the following functions:
Clearing
Settlement
Types of Clearing members
1.Self-clearing Members
2.Trading cum Clearing Members
3.Professional Clearing Members (PCM)
4. Funds settlement - clearing banks
Clearing Mechanism
Clearing can be defined as the procedure by
which an organization acts as an
intermediary and assumes the role of both
buyer and seller for transactions in order to
reconcile orders between transacting
parties.
5. Final Settlement
1. On the expiry of the futures contracts, NSCCL marks all
positions of a CM to the final settlement price and the
resulting profit / losses settled in cash.
2. The final settlement profit / loss are computed as the
difference between trade price or the previous day’s
settlement price and final settlement price
6. “It is your decisions not
your conditions that
truly shape the quality
of your life.”
