Securities Clearance and Settlement Systems : A Guide to Best Practices
As an essential part of a nation's financial sector infrastructure, securities clearance, and settlement systems must be closely integrated with national payment systems, so that safety, soundness, certainty, and efficiency can be achieved at...
| Main Authors: | , |
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| Format: | Policy Research Working Paper |
| Language: | English en_US |
| Published: |
World Bank, Washington, DC
2014
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/2001/04/1089539/securities-clearance-settlement-systems-guide-best-practices http://hdl.handle.net/10986/19684 |
| Summary: | As an essential part of a nation's
financial sector infrastructure, securities clearance, and
settlement systems must be closely integrated with national
payment systems, so that safety, soundness, certainty, and
efficiency can be achieved at a cost acceptable to all
participants. Central banks have paid considerable attention
to payment systems, but securities clearance, and settlement
systems have only recently been subjected to rigorous
assessment. The Western Hemisphere Payments and Securities
Clearance and Settlement Initiative (WHI), led by the World
Bank, and in cooperation with the Centro de Estudios
Monetarios Latinoamericanos (CEMLA), gave the authors a
unique opportunity to observe how various countries in Latin
America, and the Caribbean undertake securities clearance,
and settlement. To do so, the authors developed a practical,
and implementable assessment methodology, covering key
issues that affect the quality of such systems. In this
paper they discuss the objectives, scope, and content of a
typical securities system, identify the elements that
influence the system's quality, and show how their
assessment methodology works. They focus on the development
of core principles, and minimum standards for integrated
systems of payments, and securities clearance and
settlement. Their paper fills a gap by providing an
evaluation tool for assessors of such systems, especially
those who must assess evolving systems in developing, and
transition economies. Essentially, an assessment involves a
structured analysis to answer four related questions: 1)
What are the objective, and scope of a securities clearance
and settlement system? 2) Who are the participants, what
roles do they play, and what expectations do they have? 3)
What procedures are required to satisfy the
participants' needs? 4) What inherent risks are
involved, and how can they be mitigated at an acceptable cost? |
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