The clearing is an activity dealing with collecting, testing and comparing the information, as well as netting, listing the responsibilities and substituting requirements for identifying mutual responsibilities on transactions of securities or derivatives. The rules for conducting clearing activity are determined by the financial market supervisory authority.
Clearing house organizes a post-trading system along with its members - investment companies and banks. The clearing house conducts the transactions on securities held at the central depository.
In case of establishment of clearing fund in order to reduce risks associated with failure to execute transactions relating to clearing in the post-trading system, all investment companies which are members of the clearing house shall participate in the clearing fund. The clearing house manages the clearing fund.
According to the Law of the Republic of Azerbaijan “On Securities Market”, the central depository renders clearing service without getting the appropriate license.