Solution introduction

MERJ Clear provides clearing and settlement services for securities listed on MERJ Exchange

The MERJ Clear clearing and settlement platform is integrated seamlessly with the matching engine of MERJ Exchange and as such is an integrated market. Thus, trade capture is 100% automated with no manual processes. Trades executed on the MERJ Exchange Automated Trading System (ATS) are automatically fed into the MERJ Clear Real Time Electronic Clearing and Settlement System.

Pursuant to the IOSCO DVP Model 1 methodology adopted, both securities and funds (i.e. cash) are settled between relevant accounts on a real time gross basis (trade for trade processing) at the time the transaction is matched on the MERJ Exchange ATS. This eliminates settlement risk and ensures strict delivery versus payment for all transactions in equities listed on MERJ Exchange at the time of the transaction.

Corporate actions
MERJ Clear provides supporting services for issuers of listed securities relating to corporate action events which impact the securities or funds (cash) accounts of shareholders of MERJ Exchange listed securities. Examples are as follows:

  • New issues
  • Initial Public Offerings
  • Stock splits or reverse stock splits
  • Private placements
  • Rights issues
  • Bonus issues and cash dividends

Issuers and investors benefit from a dramatically increased level of efficiency and cost effectiveness.

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