Clearing is the activity dealing with collecting, testing and comparing the information, as well as netting, listing the responsibilities and substituting requirements for identifying mutual responsibilities on deals with securities or derivatives. Clearing activity in securities market is regulated by Civil Code of Azerbaijan Republic, “Law on Securities Market” and “Regulations on post trading system and clearing activity”.
Clearing organization is a legal entity created as a joint-stock company that exclusively deals with clearing activity and possesses license for that purpose. Clearing organization organizes post-trading system along with investment companies and banks.
Currently, clearing activity in Azerbaijan is performed by Central Depository.