CLEARING AND SETTLEMENT

The entire process of calculating net financial obligations (the clearing process) and the final settlement of these liabilities (the settlement process) arising from transactions in securities executed On-Exchange or Off-Exchange between financial intermediaries acting on their behalf or their clients portfolios behalf, will be carried out by financial institutions, partners of ALSE, which are specialized in providing these services. Thus, clearing and settlement of securities will be carried out by AFISAR for government securities and ALREG for non-government securities (after getting the license by AFSA). As far as the process of cash settlement concerns, it will initially be carried out by a second tier bank determined by ALSE, and later on, once ALREG is licensed by the Bank of Albania as a payment institution, all this closed circuit process will be carried out by ALREG.