Activities to determine mutual obligations (clearing). What are Clearing Companies

Clearing is a form of business cooperation with non-cash payments. The unit of account is not only goods or securities, but also certain types of services. The main thing is that the payments are balanced.

Let's imagine that there are two companies, one of which is engaged in the production of wool, and the other in sewing machines. If they want to cooperate, they can replace the monetary payment with the commodity one. The tariff in this case will look something like this: 1 ton of wool is equivalent to one typewriter. It turns out that if the parties observe such a mutual balance, then other forms of payments will become redundant for them. If expressed in economic terminology, then this form of cooperation is called clearing.

Non-cash settlements can be carried out between companies, international organizations and several countries. Not only goods or securities, but also certain types of services can be used as a unit of account. The main thing is that the most important condition of any clearing transaction is observed - the balance of payments.

Intermediary companies

This is a mandatory clearing entity that simultaneously performs the functions of a seller and a buyer. The purpose of such companies is to ensure the security of transactions and to facilitate cooperation between several parties (especially if the firms interact internationally).

If we take the banking sector, then clearing houses or centers will act as intermediary organizations. Their main functions will include:

Establishing the obligations of each of the parties involved in the transaction.
Providing guarantees regarding the fulfillment of each of the subjects of the assigned contractual obligations.
Execution of settlement operations that allow maintaining the balance of each completed clearing transaction.
Daily analytics regarding the transactions performed.

Clearing is actively practiced in those areas where a large number of transactions are carried out daily. The use of such a settlement method provides the parties with the following advantages:

Possibility of accelerated payments.
Decreased use of cash.
Elimination of risks of non-fulfillment of obligations by partners.

Main types of clearing

Bank

This activity refers to a system of non-cash payments between several banking institutions. Their requirements are met on the basis of mutual transfers of equivalent amounts of money.

Currency

Most often, this concept includes an international system of non-cash fulfillment of obligations, based on the offset of established amounts for goods sold or services performed. The main nuance of this category of transactions is the establishment of an equivalent value of clearing objects.

Simple

This activity is understood as the precise determination of the obligations of each of the parties involved in the clearing operation (related to securities or financial assets) and the performance of mutual settlements at each stage of the implementation of the clearing pool.

Multilateral

This process implies the establishment of the obligations of all participants in the clearing transaction simultaneously and the conduct of mutual settlements simultaneously for all stages of the completed clearing pool.

Commodity

Non-cash method of repayment of mutual financial obligations between the parties. It is carried out by offsetting the goods sold or services provided. Based on the balance of payments.

It is impossible not to single out such a clearing situation as netting. Its essence lies in the fact that the debt obligations of one of the partners are repaid at the expense of his financial claims. In other words, between the put profit he receives a reduced amount of debt.

Use of clearing payments during periods of global economic downturns

When periods of crisis come and the state's money supply becomes insufficient, clearing settlements go beyond their standard application. They act as an alternative payment source that allows you to make any transaction payments within the banking sector. Moreover, this phenomenon applies to all entities engaged in entrepreneurial activities and not violating international rules of cooperation.

Switzerland (VIR Bank) back in the 20th century for the first time used a clearing transaction as an additional settlement tool to get rid of current liabilities. Later, a similar scheme was used in the international format.

The use of the clearing mechanism to pay off debts during the crisis helped many organizations not only quickly overcome its negative consequences, not slow down the pace of production development, but also reach a new level of growth at a time when competitors were steadily moving towards bankruptcy.

Clearing activity is the work aimed at the release of payment obligations between economic entities. In the article we will consider the essence of clearing and the scope of its application.

Clearing, clearing activities

Clearing in translation from English (clearing) means "clean", "clear", "release", and in the commercial sphere it is a special practice when working on the securities market. That is, clearing activity is an exemption from the obligation to pay in cash, established on the basis of mutual settlement between counterparties.

For example, a seller and a buyer meet in a market. First, the subject of sale and its value are determined. Next, a contract is signed. As a result, an interchangeable transaction takes place, on the basis of which the buyer pays, and the seller transfers the goods. This is a classic example.

In the securities market, such a meeting of counterparties is quite rare. Buyer and seller share both time and space. Intermediaries who organize, calculate and guarantee the fulfillment of obligations act as a link. Thanks to the technological development of modern automation systems, it became possible to process huge amounts of information. The necessary calculations of exchange transactions are made: their registration and accounting, offset of obligations between counterparties, security guarantee and other operations.

Organizations, international companies and even entire countries can act as counterparties. And the object of such activities are goods, services, securities.

In the securities market, clearing activity is a process, the main purpose of which is the settlement and fulfillment of mutual obligations. And the main condition of the transaction is the balance of payments.

Clearing activities: Federal Law No. 7 dated February 7, 2011

The activities of clearing organizations in the Russian Federation are regulated by Federal Law No. 7-FZ of February 7, 2011 (as amended on December 30, 2015) "On Clearing and Clearing Activities".

In the Russian Federation, it is subject to mandatory licensing. The license is issued by the Bank of Russia, its validity period is not limited, but may be canceled for the reasons specified in Article 28 of Law No. 7-FZ.

The list of activities in which the company cannot engage in clearing activities is clearly spelled out in clause 3 of article 5 of Law No. 7-FZ. It is important to note that in order to implement the latter, the company must provide an initial amount of own funds of more than 100 million rubles.

Clearing operations

The described transactions are compensatory transactions. They can be with full, partial or no security at all. In the first case, the risk of financial losses is minimized, since the amounts necessary for the transaction are available on the participants' accounts.

With partial collateral on the accounts of participants, it is enough to have some part of the funds or confirm with data from other contracts. Such operations can be carried out with a zero balance on the accounts of participants, that is, without collateral. But such a transaction is quite risky.

Clearing types

Depending on the participants in the activity, there are:

Simple clearing. This is a calculation of obligations both for each participant and for each transaction.
Multilateral. It involves the calculation of liabilities in the aggregate.
Centralized. It is based on conducting transactions through the accounts of a clearing company. At the same time, she has all the rights of the participants in the transaction.

The named company has the right not only to independently determine which type of clearing is preferable to use, but also to combine them. If the obligations under securities or cash flows are of a homogeneous nature, then the intermediary organization may carry out netting (offset) of these obligations.

Types of clearing transactions

Depending on the methods of mediation, there are:

Bank clearing. It exists in those countries where the banking sector actively interacts and develops. It implies settlements between banks in a non-cash form. The main condition is the mutual offset of equivalent monetary payments.
Currency clearing. Refers to the international system of obligations. In this case, settlements can be carried out not only at established prices - a special clearing currency can be developed for this. This clearing method is used if the participants do not have a converted currency for mutual settlements. Of course, you can pay in gold, but, as a rule, such resources in many states are limited.
Commodity. It is represented by a settlement system between the stock exchange and the commodity market.

Participants of the clearing process

The participants in the mediation activity include:

the intermediary organization draws up documents in accordance with the legislation of the Russian Federation in this type of activity, receives a license from the Bank of Russia, then proceeds to work;
clearing member. A legal or natural person enters into a clearing service agreement with an organization;
clearing center. It is an organization in which the process of clearing transactions occurs through stock exchanges and other organizers of trade;
the settlement depository is a guarantor in the securities market. Transactions go through trade organizers;
settlement organization. Having received the results of clearing, this business entity calculates cash flows;
market organizers. The classic organizer is the stock exchange, which additionally carries out settlement, clearing and depository activities.

For the productive formation and development of the securities market, the role of the organizer of trading can be performed by a self-regulatory organization, which is formed from the composition of professional participants. This association is voluntary.

Features of the clearing process

Clearing activity in the securities market operates in stages. First, a contract is concluded on the stock exchange with the help of a broker. Next, the details of the transaction are specified, the volumes, cost, delivery times and other conditions are thoroughly prescribed.

Then the transaction is registered, and intentions are confirmed. This is followed by the calculation of mutual requirements, with the help of which the participants determine who will have to pay for the services of the broker, the commission of the stock exchange and other professional market participants. At the final stage, there is a mutual settlement between them.

Clearing activities of banks

In the banking sector, the role of intermediary operations is carried out by clearing houses and centers. The first of them are a powerful financial instrument and have an independent status. The chamber assumes contractual obligations, which reduces risks and guarantees financial results.

If the chamber is created within the exchange, that is, it is its structural subdivision, then the exchange controls its activities. Therefore, it is the guarantor of transactions. Having chosen the organizational and legal form in accordance with the legislation of the Russian Federation, the chamber can be organized as an independent legal entity. At the same time, its relations with the exchange are of a contractual nature. It is important to note that such a clearing house can interact with several exchanges at once.

Stages of settlement and clearing activities

As soon as a transaction is fixed by brokers on the exchange, the clearing procedure begins. Settlement and clearing activity has a certain peculiarity and goes through a step-by-step process of re-registration of a new owner of a security.

Registered on the stock exchange.
Confirmed by contractors.
Securities and money through brokers are transferred to the stock exchange.
The re-registration process is underway.
The process of returning re-registered securities to the stock exchange.
Transfer of money of re-registered securities through brokers to new owners.

Clearing activity is an important regulatory mechanism in the stock market. With its help, the amount of money supply between participants is minimized. The guarantee function in fulfillment of obligations ensures high-quality liquidity of the market itself.

Clearing is a system of non-cash settlements performed on counter obligations between business entities and countries. Counter obligations are made by mutual agreement, based on the terms of the balance of payments.

It can also be said that clearing is an activity aimed at "clearing" payment obligations of counterparties. It refers to varieties of barter, when the medium for exchange in a sale and purchase transaction is not money, but goods and services. Moreover, clearing is a form of counter trading that takes place in the market for securities, goods and services.

It should be noted that clearing is used to minimize cash flows between participants in transactions, especially international ones. Its benefit lies in the possibility of increasing the liquidity of money, as well as reducing the risks of insolvency. To get acquainted with clearing in detail, it is worth considering the concepts that are often found in this kind of activity.

Concept definitions

Aspiring entrepreneurs and future economists will find it useful to know the following definitions:

Netting is the termination of obligations that are admitted to clearing, regardless of the method used.
A clearing service is a service that involves the implementation of clearing.
Clearing is an activity that includes the provision of relevant services in accordance with the established rules, which are registered in the company by the federal executive body.
A clearing company is a legal entity entitled to carry out relevant activities. This requires obtaining a license to provide clearing services.

Under the law, clearing activities include the collection of information, reconciliation and adjustment. It relates to securities transactions and the preparation of accounting documentation. An offset is also performed for the supply of securities and the corresponding calculations.

Interbank clearing

Clearing of this type is present in most countries of the world that have a developed banking infrastructure. It is a system of non-cash payments between different banks, which are made through single settlement centers.

Interbank clearing involves the provision of services by financial institutions that perform similar functions. However, this is available without using the system in question. To do this, you need to open correspondent accounts with each other. However, this method is in some cases inconvenient for one of the parties.

Currency type clearing

Currency clearing is used in the process of performing interstate settlements on the basis of an agreement between the governments of states. The agreement of the parties is drawn up with the mutual offset of loans and claims, which are formed as a result of the cost equality of the services provided and the supply of goods.

The activity under consideration includes a set of the following tools:

system of clearing accounts;
the established volume of services, according to which payments for turnover or part of them are subject to accounting;
allowable loan balance, calculated as an absolute value or as a percentage of turnover;
the scheme for equalizing the balance after the end of the validity of the adopted agreement;
clearing currency;
payment equalization system.

The terms of the agreement are set by the governments of the member states.

Commodity type clearing

Commodity clearing is a system of settlements that are carried out between participants in the stock market. It includes a company for offsetting the claims and loans of the parties against each other. Commodity clearing also includes firms that perform settlements between participants in the stock market.

The system under consideration also has a third party that takes part in each transaction. It is the clearing house responsible for ensuring the life of the company.

Clearing of futures transactions

When making settlements under futures contracts, the services in question are also required. In this case, clearing is the activity that guarantees the fulfillment of loan requirements. When concluding transactions of this type, the parties to the contract must pay a security deposit to the clearing house. Its value depends on the time for the delivery of products and the instability of prices.

For the securities market, professional clearing is an indispensable service that has many advantages. It will also be useful to companies and institutions that offer their services or sell goods. By contacting a clearing company, it will be possible to avoid problems in the implementation of entrepreneurial activities.

Another borrowed concept that came to us from another language and is firmly entrenched in common use is clearing, which we do not always understand. It seems like the name of a company that provides cleaning services. In fact, this is absolutely not true.

Clearing: what is it in simple words?

Clearing is a method of mutually beneficial settlements on a cashless basis between several participants: enterprises, countries, banks. In other words, clearing procedure for balancing financial turnover without money.

For example, one counterparty hands over nuts worth $200 per ton to another, and the latter in return gives cars at a price of $2,000 apiece. In this case, when selling 200 tons of nuts at the expense of 20 cars, a balance of mutually beneficial payments will be observed that does not require money transfers - exchange, barter.

Today, special clearing companies are being created that are authorized to provide such transactions. Their responsibilities include:

Drawing up agreements establishing the terms of settlements between the parties.
Cost balancing.
Determining the quantity and type of goods.
Ensuring the security of all transactions.

Cash settlements can only be made between partners in order to equalize the accumulated difference. Clearing organizations are required to obtain a license to conduct their work regulated by the central bank of the country.

So, when you are offered to exchange your car for a moped with a surcharge, this will be a clearing agreement.

Types of cashless payments

The terms of the transaction are different, so there is several types of calculations:

Simple clearing - registration of obligations of each party and calculation of the value of the transaction.
Banking - a type of settlement according to a non-cash scheme among banks, based on an equivalent offset of payments.
Multilateral - produced between multiple parties to the agreement.
Currency non-cash settlement - provides for international offsets of payments for goods and services of equivalent value in a clearing currency - a monetary unit chosen by all participants.

During the financial crisis, clearing played an important role. He went beyond the usual and began to work as an auxiliary means of settlement between entrepreneurs through a bank. This made it possible to reduce the shortage of money issued by the state into circulation and restore economic balance.

Advantages and disadvantages

What is the advantage of this type of mutually beneficial settlements, why is clearing becoming more and more popular?

High speed of money rotation.
Reliability of calculations.
Low costs for the execution of monetary transactions.
Simplicity of payment transactions.
Clearing allows you to reduce the amount of mutual debts, if any.

Disadvantages - risks to which all parties to the agreement are exposed:

Significant price fluctuations in the market.
Violation of the time frame by one of the parties to the contract.
Since non-cash payments are made mainly with the help of electronic systems, the risk of losses associated with the functioning of these resources and services.
The risk of receiving incorrect data for all participants in the chain.
The risk of losing money.
Bankruptcy.

Risk hazard reduction is one of the tasks of clearing companies. To this end, they form guarantee funds or insure risks.

Warranty

The fund, which ensures the security of the parties to the agreement in case of an agreement on cashless payments, is formed from the funds of the parties themselves. It can be: money, securities.

Contributions go to:

Ensuring the fulfillment of obligations in case of insufficient money on the accounts of the participant of the agreement.
Ensuring the fulfillment of obligations if there is not enough money on the accounts of the client of the agreement participant.

The procedure for storage and use, creation of contributions provides for:

The amount of money invested in the fund.
Determination of what amounts and for what can be used to ensure the security of the transaction.
Cash withdrawal scheme.

By decision of the organization that ensures the security of non-cash payments, several guarantee funds can be created for different purposes. The money is placed on accounts owned by the clearing company. All parties to the treaty shall be informed of any movement thereof. Thus, clearing becomes a practically safe form of non-cash payments.

NCC Clearing Rules

NCC is a national clearing center that performs the duties of a clearing organization and has extended its functions to all possible markets: stock, commodity, precious metals and derivatives. The Center assumes the possible risks of transactions and acts as an intermediary between the parties. For those who want to become a clearing member, the bank has created a list of rules: general provisions, rights and obligations, on the basis of which it provides services to a clearing organization. Here are some of them:

Any participant must enter into a service agreement and comply with these rights and obligations.
Settlements are made in rubles or other foreign currency.
The amount of payment for clearing services is set taking into account the tariff stipulated by the rules of the center.
Any documents provided by the parties to the transaction will be treated as confidential.
The Clearing Center has the right to take measures to determine the sources of receipt of funds, property contributed by participants.
Forms and methods of documents provided by clients must comply with NCC's internal rules. Required documents are disclosed on the website.
Employees of the center have the right to restrict certain operations on the required settlement day. Clients are notified in advance of this decision.

Clearing is a system of mutual non-cash payments for goods, securities and services rendered based on mutual financial claims and debts. Clearing is a form of counter trading.
In world practice, interbank clearing, currency clearing and commodity clearing are distinguished.
Interbank clearing takes place in almost every country with a developed banking infrastructure and is a system of non-cash payments between banks, carried out through single settlement centers. Banks can carry out mutual settlements without a clearing system by opening correspondent accounts with each other. In practice, this might look like this: bank A opens a correspondent account with bank B and deposits some money in it. Bank B, on behalf of bank A, can make settlements within this amount.

The clearing system is based on the fact that all banks perform approximately the same functions.

Currency clearing is used for interstate settlements on the basis of an agreement between the governments of these states. The relations of the parties are based on the mutual offset of counterclaims and loans, which follows from the cost equality of commodity deliveries and services rendered. Currency clearing includes a set of obligatory elements, such as: the system of clearing accounts, the volume of clearing (all payments for the turnover or only part of them are subject to accounting), the clearing currency, the volume of the technical loan (the maximum allowable debt balance of one party to the other, calculated as a percentage of turnover or in the form of an absolute value), a payment equalization system, a scheme for the final equalization of the balance at the end of the intergovernmental agreement.

Under commodity clearing understand the system of settlements between participants in the stock market, which includes both the company for offsetting their claims and debts to each other in one form or another, and the company for the settlements themselves between them. In this system, there is a third party for each concluded transaction, namely the Clearing (settlement ) a ward that ensures its vital functions.

Clearing of futures transactions

For futures contracts, settlements are carried out as follows. When concluding a transaction, the seller and the buyer of the contract make a security deposit to the Clearing House to secure the fulfillment of loans under the contract (CS). The amount of the security deposit is determined by the Clearing House, based on the instability of prices and the time remaining until the delivery of the product, and usually ranges from five to fifteen percent of the contract value. In case of unfavorable market conditions and when the delivery date is approaching, the Clearing House may require an increase in the amount of the deposit up to one hundred percent.

Daily by futures transactions, not liquidated at the end of the trading day, calculations are made, according to the results of which the chamber determines the amount of payments required to be paid to the account of the chamber by sellers or buyers, depending on the change in price: if the price increases, the party that sold the contract is obliged to cover the discount before the start of the next trading day between the closing cost of the previous day and the closing cost of the current day for all open positions; when the price goes down, the margin is paid by the buyer.
Mutual settlements between participants in the futures sale (clearing) are made on the basis of the results of each day of trading. During clearing:
For each participant bidding variable margin is calculated. In this case, the winning amounts are credited to the participant's accounts, and the losing amounts are debited from them.
Based on the results of all transfers, the account balance of each member of the Clearing House is determined.
The number of open positions at the end of trading for each participant is calculated and the amount of the initial deposit is calculated, which must be on the account of a member of the clearing house (allowable minimum).
If the allowable minimum account exceeds the account balance, then the difference must be deposited by the member of the Clearing House to the account of the house. If the account balance exceeds the allowable minimum, then the difference between them forms the free balance of funds on the account, which can be claimed from the account of the Clearing House.
Information on the result of clearing is communicated to trading participants through reports prepared by the Clearing House.
A member of the clearing house is obliged to pay the debt to the chamber before the start of trading on the next trading day.
If, by the beginning of the next futures trading, the participant has not deposited the amount necessary to maintain all open positions by him, he must, within sessions close unsupported positions.
If the full closing of all positions does not lead to the liquidation of the participant's loan to the Clearing House, then for this purpose the participants' funds held in the Clearing House are attracted. If this is not enough, the chamber shall raise funds from its other members or take loan against the security of the collateral accumulated by it.
In practice, all payments related to covering the price discount are made by the Clearing House itself at the expense of special funds or deposits made by each participant before the start of trading. With the introduction of a clearing system on stock market improving the quality of the market. Each seller and buyer on the exchange is most often intermediaries(brokers) and acts on behalf of and on behalf of its clients, the number of which is regulated by the relevant rules on the exchange. As a result of mutual settlements conducted by the Clearing House, the number and volume of funds transferred for mutual debts of participants may be significantly reduced stock market, which makes it more liquid and speeds up processes settlements between sellers and buyers.