Clearing and Settlement in a Legal Perspective
Working paper no 20, 2004
This paper describes how the two most important clearing and settlement systems in Denmark, VPand the Sumclearing, work in practice. Further it analyses, how the legal framework in theSecurities Trading Act, STA, based on directive 98/26/EC on settlement finality in payment andsecurities settlement systems works in relation to the functionality of VP and the Sumclearing. Thefunctionality for both systems encompasses net settlement (multilateral netting).