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MERJ CLEAR

MERJ CLEAR

Overview

MERJ Clearing and Settlement Limited (MERJ CLEAR) is a licensed clearing agency (i.e. clearing house) pursuant to the Securities Act regulated by the FSA and an authorized and regulated operator of a securities clearing and settlement system pursuant to the National Payment Systems Act regulated by the Central Bank. MERJ CLEAR provides clearing and settlement services for all instruments supported by the exchange and MERJ DEP, including DLT Assets.

Highlights:

  • pre-trade risk management
  • position pre-validation
  • no naked short selling
  • no settlement risk
  • multi-asset (digital assets, equities, debt and derivatives), multi-currency clearing and settlement services for all listed instruments on MERJ EXCHANGE
  • full automated integration with MERJ EXCHANGE and MERJ DEP
  • cross market support (i.e. digital asset and securities markets from a single participant interface)
  • removes counterparty and settlement risk usually present between participants
  • international participation permitted by retail investors, professional investors, broker-dealers and financial institutions
  • high capacity real time gross settlement of transactions on a bilateral basis

The MERJ EXCHANGE Market Rules currently prescribe for all listed securities and instruments to be settled on a delivery versus payment method in accordance with rules established by MERJ CLEAR. MERJ CLEAR has adopted one of the three IOSCO and G30 recommended delivery versus payment frameworks being DVP Model 1 (“Real Time Gross Settlement”). This requires the buyer to have sufficient funds and the seller to have sufficient assets in their account to support the respective buy and sell orders (i.e. pre-validated or pre-cleared trading). This model eliminates principle risk that would otherwise exist between counterparties in the market.

"Funds" in the MERJ environment includes scriptural money at present and MERJ is also exploring addition of major cryptocurrencies and stablecoins as a means of settlement for certain listed instruments on MERJ EXCHANGE"

“Assets” include securities and other instruments listed on MERJ EXCHANGE and supported by MERJ DEP (i.e. where MERJ DEP provides registry services or depository services for “eligible assets”).

Transactions on MERJ EXCHANGE are novated to MERJ CLEAR which is thereafter asserted as the seller to the buyer and the buyer to the seller. Settlement of each transaction novated to MERJ CLEAR is guaranteed by MERJ CLEAR and this model allows the identity of both the buyer and seller to be shielded from one another.

Clearing

The MERJ CLEAR clearing and settlement platform is integrated seamlessly with the matching engine of MERJ EXCHANGE and as such is an integrated market. Trade capture is 100% automated with no manual processes. Trades executed on MERJ EXCHANGE Automated Trading System (ATS) are automatically fed into the clearing and settlement system operated by MERJ CLEAR.

Settlement

Pursuant to the IOSCO DVP Model 1 methodology adopted funds and assets are settled between relevant accounts on a real time gross basis (trade for trade processing) following the matched transaction on the MERJ EXCHANGE ATS. For assets whereby MERJ DEP provides registry services and/or depository services, an automated instruction is sent in real time to MERJ Dep to update the appropriate register in order to reflect the change in ownership. This eliminates settlement risk and ensures strict delivery versus payment for all transactions on MERJ EXCHANGE.

Banking

MERJ CLEAR maintains its clearing agency accounts for all scriptural money with Barclays Bank. All other types of “funds” are maintained in accounts with MERJ DEP.

About MERJ CLEAR

MERJ CLEAR and Settlement Limited, formerly AfriClear Limited, was established in 2012 in Seychelles. It is licensed as a clearing agency pursuant to the Seychelles Securities Act 2007 and regulated by the Seychelles Financial Services Authority (FSA).

MERJ CLEAR is domiciled in the Republic of Seychelles. It is a wholly owned subsidiary of MERJ EXCHANGE Limited.

Governance

The MERJ CLEAR Board of Directors is responsible for providing direction to and overseeing the conduct of the affairs of MERJ CLEAR. The three Member Board comprises of an independent, non-executive Chairman, one non-executive director (CEO of MERJ EXCHANGE) and a Managing Director.

  • Karl Pragassen – Chairman (Independent, Non-Executive)
  • Bobby Brantley – Director (Non-Executive)
  • Ed Tuohy - Managing Director

ContactInfo

For more information please contact us on the Enquiries page.

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Post Trade Summary

Learn more about MERJ Clearing and Settlement Limited

MERJ DEP

Learn more about MERJ Depository and Settlement Limited

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