A clearing house is a legal entity exclusively engaged in clearing activities, licensed for this type of activity and established as a joint-stock company.

Clearing activity is collection, verification and reconciliation of data, netting positions, sorting liabilities, offsetting claims in order to determine mutual liabilities on transactions with securities or derivatives. The clearing house, together with its member investment companies and banks, forms a post-trade system.

The clearing house should use at least one of the following methods to reduce the risk of non-performance of transactions with securities and derivatives:

• prior entry of assets into depo accounts;
• establishment of a clearing fund;
• insurance of assets;
• asset guarantee;
• asset securitization.

A central depository may be engaged in clearing activity without obtaining a relevant license.