The secure and efficient functioning of securities markets is only possible with the existence of the requisite infrastructure to provide market participants with secure, smooth and effective trading and settlement of securities transactions. This infrastructure includes trading, payment and clearing systems and securities settlement systems, while there is also a need for properly regulated sectoral legislation governing the functioning of these infrastructures and their operators.
Securities may be traded on regulated securities markets, and trades may also be negotiated over-the-counter (OTC). In Slovenia trading on the regulated market takes place on the Ljubljana Stock Exchange. The calculation of claims and the settlement of transactions of securities traded at the Ljubljana Stock Exchange is carried out in Slovenia by the Central Securities Clearing Corporation (KDD). The settlement of the cash leg of securities transactions is usually executed in central bank money (via cash accounts at the central bank), but settlement is also possible in commercial money (via cash accounts at commercial banks).