Clearing the settlement account of a financial institution is a procedure to end the existing legal relationship, dispose o
Clearing the settlement account of a financial institution is a procedure to end the existing legal relationship, dispose of its remaining property and make it disappear. Liquidation is a legal procedure. When an association is cancelled, it must liquidate its property. An act that terminates itself without liquidation has no legal effect and is not protected by law. Both parties settle accounts on the agreed date. Clearing and settlement are two different concepts.
The liquidation of financial institutions is a procedure to end the existing legal relationship, dispose of its remaining property and make it disappear, including calculation and verification. Delivery refers to the performance of the contract within the agreed time according to the liquidation results during the securities trading process. It means that both parties to the transaction complete the receipt and payment of the securities and currency related to the transaction the next day, that is, the buyer receives the securities and the seller receives the currency.
The significance of liquidation and company liquidation is that the company liquidation system is a very important part of the company's demise. Its importance lies in protecting the rights and interests of both shareholders and creditors, and does not involve the transfer of creditor's rights and debts. Liquidation is the promotion and delivery of settlement, and its essence is to realize the receipt and payment of securities and prices according to the liquidation results, thus ending the trading process.
Clearing and settlement is the final result of the transaction between the two parties, and the buyer pays for the securities he purchased. China securities market adopts the legal person settlement mode. Legal person settlement means that other securities companies open fund settlement and settlement accounts in securities registration and settlement institutions in the name of legal persons, and handle the settlement and settlement of securities transactions entrusted by customers through this account.