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ALSE / SERVICES / CLEARING AND SETTLEMENT

Clearing and Settlement

How the net financial obligations arising from securities transactions executed on or off the Exchange are calculated and settled.

The entire process of calculating net financial obligations (the clearing process) and the final settlement of these obligations (the settlement process) arising from transactions in securities — executed on the Exchange or outside it, between specialized financial intermediaries acting on behalf of their own portfolios or their clients' portfolios — is carried out by the financial institutions partnered with the ALSE Exchange, specialized in providing these services.

1

Clearing and Settlement Institutions

All transactions executed on the ALSE Exchange are cleared and settled by the relevant institutions, specialized and licensed by the AMF.

AFISAR

Active

The system managed by the Bank of Albania for the clearing and settlement of securities transactions.

Scope
Government debt securities

ALREG

Active

Institution responsible for the clearing and settlement of transactions in non-Government securities.

Scope
Non-Government securities
2

Clearing and Settlement Time

Clearing and settlement deadline — T+2
Failed (defaulted) transactions
Transactions that fail to settle within the 2-business-day period are considered failed.

ALSE, in cooperation with the clearing institutions, does everything possible to be as rigorous as possible in preventing transaction failures, as these damage market integrity and the trust of the investing public.

Special regulations with strict penalizing measures for non-compliant entities.
Exchange members (brokerage firms) bear legal and administrative responsibility.
Brokers guarantee the closing of positions, even on behalf of their clients.
3

Clearing and Settlement Principle

Delivery versus Payment (DvP)

The clearing and settlement process follows international best practices and standards, with the aim of reducing risk. The basic principle for transactions executed on the ALSE Exchange is Delivery versus Payment.

Delivery of securities ⇄ Payment (cash) → Transaction closed simultaneously