Clearing and settlement of debt securities

Introduction to clearing and settlement of debt securities

The market for debt securities depends on an extensive infrastructure of systems and services, including:

1. •

   infrastructure which eliminates the risk that a party who has entered into a contract for the sale and purchase of debt securities will fail to complete the transaction (clearing infrastructure), and

2. •

   infrastructure which enables debt securities to be delivered from one party to another in performance of a previously agreed purchase and sale or under a transaction such as a securities lending transaction (settlement infrastructure and, together with clearing infrastructure, post-trading infrastructure).

For more information on post-trading infrastructure, see Practice Note: Debt securities market infrastructure. For more information on securities lending transactions and repos, see Practice Notes: An introduction to securities lending transactions and the Global Master Securities Lending Agreement (GMSLA) and An introduction to repo and the Global Master Repurchase Agreement (GMRA).

Clearing debt securities

Clearing