Physical Settlement

In securities market clearing the securities position on trade day is settled in line with segregation, the European market practice, with respect to all securities transactions on the second (2.) clearing day after the day the transaction is made (on T+2 where T = Transaction Day).

During settlement the settlement positions are formed at the Clearing Member own and omnibus principal segregation levels, while for Non-clearing Members, typically in line with the decision of the Clearing Member, the securities positions are consolidated in the Non-clearing Member account. The place of settlement on the securities side is always KELER.

Clearing Members are required to make sure that the securities positions in line with segregation are available in the settlement accounts not later than 14:00 on Settlement Day (SD), from these accounts KELER CCP will take them to its technical account for the entire quantity. (Partial settlement is not available.) If all the transactions are settled on time (including the settlement of financial positions also), the clearing system of KELER CCP posts credit transactions automatically related to both securities and cash settlement.

Should any Clearing Member fail to meet securities delivery obligations by the applicable deadline, KELER CCP declares default, cancels the defaulted transactions from multinet clearing, then settlement is completed and KELER CCP starts the default procedure.