Skip to main content

Clearing Agencies

In securities trading, a clearing agency:

  • acts as an intermediary in paying funds, in delivering securities (or in doing both)
  • provides centralized facilities for clearing trades
  • provides centralized facilities as a depository of securities

In derivatives trading, a clearing agency provides centralized facilities for clearing and settlement of trades in derivatives, and:

  • enables parties to substitute, through novation or otherwise, the credit of the clearing agency for the credit of the parties
  • arranges or provides for the settlement or netting of obligations from the track
  • provides clearing services or arrangements that mutualize or transfer credit risk among participants

FCNB has issued the following documents related to clearing agencies.

Memorandum of Understanding Respecting the Oversight of Clearing Agencies, Trade Repositories and Matching Service Utilities - 3 December 2015