SPOT CLEAR is the facility of Spot Multi Commodities Market Limited (SMCM) to provide clearing and settlement services SMCM, whereby all trades executed on SMCM will be cleared and settled by SPOT CLEAR as an in house settlement.

Spot clear guarantees the settlement of all trades executed on SMCM by assuming the counter party risk of the Clearing Members for all the trades done on SMCM. Spot clear guarantees its Clearing Members of Funds pay-out till marking of delivery and Financial compensation (to make good losses of non-defaulting party) in case of default (in goods or funds pay-in) after marking of delivery

Clearing and Settlement Division of SMCM shall perform and monitor all activities relating to delivery and fund settlement through a well-defined settlement cycle.

Benefits:

1. 1. It enables quicker transactions
2. It is an accurate system which is transparent and regulated.
3. The occurrence of illegal transactions can be avoided.
4. The parties are in large numbers as buyers and sellers which may create conflicts. So the best will be served to both the buyers and sellers.
5. No separate cost for system maintenance, data server and user data maintenance.
6. Complete tracking from procurement till consumption of commodities.

FACTORS AFFECTING:

1. No. of buyers and sellers involved.
2. Availability of correct information of the spot price of any commodity.
3. Transparent information must be provided.
4. Quantity of volume traded.
5. Linking of commodities and warehouses.
6. Different charges applicable.