Midclear performs clearing and settlement for local and internationally traded securities. Whatever the market, trades between Midclear members are settled on a DELIVERY VERSUS PAYMENT basis through its application, thus keeping with international procedures:
- All cash clearing will take place at the Central Bank of Lebanon, and it will act as the clearing bank.
- Settlement of Local Markets transactions:
In order to settle local market transactions, members must have a LOM account in Midclear CSD LOM (MCCSD) in the Real Time Gross Settlement/BDL RTGS. Midclear has the power to debit and credit all accounts in this LOM and will execute multiple cycles during each day to settle all BSE trades and local instructions on a net basis.
Three settlement cycles (9:45, 11:45, & 13:45) are executed on all days except for Friday where only two settlement cycles are executed (9:45 & 11:45). Members will have to fund their own accounts in MCCSD LOM with their cash obligations before each settlement cycle each day. Members can check their cash obligations on Midclears website, https://www.midclearonline.com.lb.
- Other operations settlement : Foreign Markets, BSE Commissions & Fees:
To fulfill their obligations (purchases, commissions, fees, etc), members need to transfer funds toMidclear’s account in the RTGS (GLOM). Midclear will transfer any cash proceeds (sales,etc) to members RTGS (GLOM).
- Any member, who cannot open an account in the RTGS, can make arrangements with another RTGS member to provide them with settlement and other services.
Midclear’s tasks at this level include:
- supervision of trade settlements in line with instructions.
- same day information on securities received and/or delivered.
- same day information on refused receipts and deliveries.
- information on open positions on a regular basis.
- supervision of interest / dividend payments and of the transfer of rights related to trade settlements.
It is worth noting that:
- All Beirut Stock Exchange orders transmitted to Midclear for clearing and settlement are
- Midclear will not settle trades partially.
- Settlement takes place on trade date plus three (T+3).
With the reduced settlement period of stock exchange trades, the time available for the receipt and return of shares is decreasing. To overcome the possible problem arising from this, and to ensure that settlement is effected on time, Midclear offers the opportunity to transfer your shares into a book-entry form. In this manner, Midclear and your bank are able to administer your holding while leaving beneficial ownership and full control with you.
Thus, stock journal entries for deposit, withdrawal, and transfer are done with same day value, and trades executed on the exchange are recorded three working days after trade date (T+3).