Clearing and Settlement in a Legal Perspective

Working paper no 20, 2004

Authors Andersen, Niels C.
Subject Payment and settlement systems; Financial markets and financial stability; Payment systems; Securities settlement; Financial legislation
Type Working paper
Year 2004
Published 23 July 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).