Clearing and Settlement
Key information on the processes and regulations for these financial operations.
Settlement
BYMA settles primary and secondary market trades, ensuring the application of the Delivery vs Payment (DVP) principle, both in the guaranteed and non-guaranteed segments.
In the case of secondary trading in the guaranteed segment, BYMA acts as Central Counterparty.
Trades originating from SENEBI, whose settlement is not guaranteed are settled bilaterally within BYMA processes, although it does not act as Central Counterparty.
BYMA can also settle trades concluded in other markets. In this case, the seller and buyer must provide full details of the trade.
The settlement system
BYMA settlement system operates in real time, allowing to query and settle the positions derived from the operations carried out by the Members from the terminals installed in their offices.
The confidentiality and integrity of the data transmitted are guaranteed at the level of each workstation by the Secure Communications System.
Respect for good corporate governance practices is essential to BYMA's long-term success.
Clearing
BYMA may act as Clearing House for the transactions it performs.
The Clearing House offers a unique centralized clearing and settlement mechanism, with netting of transactions by each Member for a given maturity (minimizing movements of securities and funds) and consolidation (simultaneous transfer of securities and counter securities), thus perfecting transactions in a timely manner.
In addition, BYMA has the possibility of settling transactions through other international clearing houses.
Benefits of a Clearing House
- Standardizes and automates operation capture and post-operation processing.
- It provides a “gold record” for each operation.
- It provides a standard set of business conditions and thus minimizes legal risk.
- It provides a robust payment system.
- It maintains the anonymity of operations once they are concluded.
Central Counterparty and Collateral System
As Central Counterparty, BYMA intervenes in the settlement of the transactions it guarantees. At the time of settlement, it delivers the funds to the sellers and the marketable securities to the buyers. Thus, it is the sole settlement counterparty of each Member Agent in the guaranteed segment.
Benefits of a Clearing House
- Standardizes and automates operation capture and post-operation processing.
- It provides a “gold record” for each operation.
- It provides a standard set of business conditions and thus minimizes legal risk.
- It provides a robust payment system.
- It maintains the anonymity of operations once they are concluded.
