Working Papers present research work by both Danmarks Nationalbank’s employees and our partners. Working Papers are primarily targeted at professionals and people with an interest in central banking research as well as economics and finance in a broader sense.

Financial stability and financial risks

Clearing and Settlement in a Legal Perspective

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).