Clearing and settlement

The CSD performs clearing and settlement of transactions in securities, concluded at the Macedonian Stock Exchange.

The clearing is a procedure for calculating the obligations arising from the concluded transactions in securities and the preparation procedure for the settlement of such transactions by checking the availability of the required securities and cash.

The settlement of transactions in securities executed on a 'delivery versus payment " basis which means the transfer of securities based on trade transaction is conducted through simultaneous exchange of securities and cash.

More specifically, the "delivery versus payment" or "DVP" is a procedure for transfer of securities and transfer of funds, which ensures that the transfer of securities is made simultaneously only if the payment is made, or a full synchronization of the securities transfer and payment.

The settlement is done on a gross basis on the securities side and the cash side is netted.  This means that the exchange of securities is done between the securities accounts of the participants in the trade transaction (buyer and seller), and the exchange of the funds is done between special accounts intended for settlement of trade transactions of the CSD members at the National Bank of Republic of Macedonia.  

All transactions with securities concluded on the MSE and the OTC market which is organized by the National Bank of the Republic of Macedonia (short-term treasury bills and bonds) are subject to clearing and settlement within CSD.

CSD performs clearing and settlement of transactions in securities on the basis of data received from the Stock Exchange on the trading day. The data received by the Exchange contains the elements necessary for clearing and settlement of transactions. These data refer to the price at which the buyer and seller agree to buy and sell securities, through which brokerage houses the transaction was concluded, the trade date and settlement date, the account number of the buyer and seller, etc.

Once the Depositary receives the matched transactions  from the Exchange, the transaction is binding on both parties involved in its conclusion.

The transactions received from the Exchange are final and cannot unilaterally be canceled by the participant in the clearing (the broker). Only CSD may, at the request of the Stock Exchange and by special order for correction of errors, make changes or cancel the transaction.

Before the settlement, a participant in the transaction - seller is obliged to provide securities to his / his client securities account and the  participant in the transaction - buyer is obliged to provide cash on its cash settlement account for each transaction individually. The settlement in the Depositary is conducted no later than three days after the trade day.