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Showing posts with the label clearing settlement.

What is Clearing Corporation and clearing house.

 Clearing Corporation  What is Clearing Corporation  Clearing Corporation/ Clearing House is responsible for clearing and settlement of all  trades executed on the F&O Segment of the Exchange. Clearing Corporation acts as a  legal counterparty to all trades on this segment and also guarantees their financial  settlement. The Clearing and Settlement process comprises of three main activities, viz.,  Clearing, Settlement and Risk Management.  Clearing and settlement activities in the F&O segment are undertaken by Clearing  Corporation with the help of the following entities: Clearing Members and Clearing  Banks.  *Clearing Members   There are 3 main type in clearing members. 1. Self clearing member : They clear and settle trades executed by them only, either  on their own account or on account of their clients.   2. Trading member–cum–clearing member: They clear and settle their own trades...