The legal system for clearing and settling transactions in the stock market

Abstract

Abstract: The clearing house is one of the most important steps or necessary procedures in the process of trading papers because of its quick and safe settlement, as it defines the rights and obligations of the counterparties in the trading of securities, provided that a central party mediates as a central counterparty to carry out its tasks, and that the effect after Every sale or purchase of securities listed in the market is a process of clearing and settlement of the mutual accounts of the parties to the deals that have taken place. From one account to another, therefore, trading cannot produce its legal effect without completing the clearing and settlement procedures, as it is a non-trading process.