The Clearing and Settlement system comprises two processes:

a) Clearing – the process of calculation and transfer of the amounts to be paid by the buying and selling sides of securities traded. This calculation includes the value of fees to be paid, including commission of the Central Securities Depository and of the Mozambique Stock Exchange, stamp duty (for values non-listed securities) and any other costs that the transaction may be subject.

Although the management of this process is done by the Central Securities Depository, this settlement itself happens in the settlement chamber of the payment system of the Bank of Mozambique who later informs the Central Securities;

b) Settlement - is the transfer of securities made from the seller to the buyer after the Central bank confirms that the clearing has occurred with success.
 
The set up process takes place with intervention of brokers involved in the trade and the Central Securities Depository as follows:
 Trade Day (T):

1st. 8h-12h – the trade occurs in the trading system of the Stock Exchange;
2nd. 12h-13h – trade is loaded in the Central Securities Depository system;
3rd. 13h-14h – a split of the trade occurs according to the individual quantities bought or sold by each investor;
4th. 14h-15 – period in which it is specified the investors involved in the trade.

Note: Although the Client specification is made between 14h and 15h, this data (investor – buyer or seller) can be changed by the brokers, if they need to, until 10am the second business day after the deal occurs (T+2).

Second and third business day after the deal (T+2 and T+3):

Before 15:30pm of T+2, settlement schedule reports are sent to the payment system of the Central Bank and to the brokers which intervened in the trade, which in turn proceeds with the clearing on the following business day (T+3) and confirms the Central Securities Depository until 10:30h of that same day (T+3).

The settlement is made by the Central Securities Depository to 12pm.
The above procedure is related to settlement of securities listed in the exchange. For securities traded on the OTC market (not listed securities), the financial settlement takes place on the next business day after the trade.
 
Ex1:
 

Ex2:
Listed Securities:



OTC securities: