Clearing covers the calculation of participants’ net obligations (or net rights) prior to settlement. In this case there is multilateral clearing for each market and with stipulated timeframes.
Among the benefits of multilateral clearing is a reduced need for liquidity from the participants, as well a lower number of transactions and consequently less risk and lower operating costs.
Settlement is a composite of processes to transfer assets and financial resources between buyers and sellers, thus setting off the rights and obligations that stem from clearing.
In the settlement of transactions with securities, transfer occurs through accounts opened with a depository institution. The settlement of corresponding financial resources generally occurs in an interbank system for the transfer of funds that is in most cases managed by the Central Bank.
As this is a critical infrastructure component of the financial market, BM&FBOVESPA manages high-quality clearing and settlement systems and processes which meet internationally-established requirements and standards. It thus guarantees market participants the trustworthy and secure settlement of transactions.