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...

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Main Authors:	Guadamillas, Mario, Keppler, Robert
Format:	Policy Research Working Paper
Language:	English en_US
Published:	World Bank, Washington, DC 2014
Subjects:	ASSURANCE BANK FOR INTERNATIONAL SETTLEMENTS BANKRUPTCY BANKS BATCH PROCESSING CAPITAL MARKETS CEMLA CENTRAL BANKS CLEARING ARRANGEMENTS CLEARINGHOUSES COMMITTEE ON PAYMENT AND SETTLEMENT SYSTEMS COUNTERPARTY COUNTERPARTY RISK MANAGEMENT CPSS CSD CUSTODIAN CUSTODIANS CUSTODY DEALERS DEBT DELIVERY VERSUS PAYMENT DEPOSITORY DEPOSITS DERIVATIVES DIGITAL SIGNATURES DIRECT PARTICIPANTS DISCHARGE DIVIDENDS DVP EMEAP EMERGING MARKET ECONOMIES EUROPEAN MONETARY INSTITUTE FINAL TRANSFER FINANCIAL INSTITUTIONS FINANCIAL SECTOR FUNDS BALANCES FUNDS TRANSFER FUNDS TRANSFER SYSTEMS FUNDS TRANSFERS GOVERNMENT SECURITIES GRIDLOCK GROSS SETTLEMENT SYSTEM GROSS SETTLEMENT SYSTEMS GROUP OF TEN ICSD IMMOBILIZATION INCOME INDIRECT PARTICIPANTS INSURANCE INSURANCE COMPANIES INTEREST PAYMENTS INTRADAY LIQUIDITY ISIN ISSUERS LEGAL FRAMEWORK LIQUIDITY LIQUIDITY RISK LOCAL AGENTS MARKET ECONOMIES MARKET PARTICIPANTS MONETARY AUTHORITIES MONETARY POLICY MUTUAL FUNDS NATIONAL PAYMENT SYSTEMS NET SETTLEMENT NET SETTLEMENT SYSTEMS NETTING NOVATION OPERATIONAL COSTS OTC OVER THE COUNTER PAYMENT SYSTEMS PAYMENTS SYSTEMS PENSION FUNDS PHYSICAL SECURITIES REAL TIME GROSS SETTLEMENT REGULATORY FRAMEWORK RISK MANAGEMENT RISK MITIGATION RTGS SADC SAFEKEEPING SAVINGS SECURITIES SECURITIES COMMISSIONS SECURITIES LENDING SECURITIES MARKETS SETTLEMENT RISKS SETTLEMENT SYSTEMS SOUTHERN AFRICAN DEVELOPMENT COMMUNITY STOCK EXCHANGES SYSTEMIC RISK TRADEOFFS
Online Access:	http://documents.worldbank.org/curated/en/2001/04/1089539/securities-clearance-settlement-systems-guide-best-practices http://hdl.handle.net/10986/19684

id	okr-10986-19684
recordtype	oai_dc
spelling	okr-10986-196842021-04-23T14:03:43Z Securities Clearance and Settlement Systems : A Guide to Best Practices Guadamillas, Mario Keppler, Robert ASSURANCE BANK FOR INTERNATIONAL SETTLEMENTS BANKRUPTCY BANKS BATCH PROCESSING CAPITAL MARKETS CEMLA CENTRAL BANKS CLEARING ARRANGEMENTS CLEARINGHOUSES COMMITTEE ON PAYMENT AND SETTLEMENT SYSTEMS COUNTERPARTY COUNTERPARTY RISK MANAGEMENT CPSS CSD CUSTODIAN CUSTODIANS CUSTODY DEALERS DEBT DELIVERY VERSUS PAYMENT DEPOSITORY DEPOSITS DERIVATIVES DIGITAL SIGNATURES DIRECT PARTICIPANTS DISCHARGE DIVIDENDS DVP EMEAP EMERGING MARKET ECONOMIES EUROPEAN MONETARY INSTITUTE FINAL TRANSFER FINANCIAL INSTITUTIONS FINANCIAL SECTOR FUNDS BALANCES FUNDS TRANSFER FUNDS TRANSFER SYSTEMS FUNDS TRANSFERS GOVERNMENT SECURITIES GRIDLOCK GROSS SETTLEMENT SYSTEM GROSS SETTLEMENT SYSTEMS GROUP OF TEN ICSD IMMOBILIZATION INCOME INDIRECT PARTICIPANTS INSURANCE INSURANCE COMPANIES INTEREST PAYMENTS INTRADAY LIQUIDITY ISIN ISSUERS LEGAL FRAMEWORK LIQUIDITY LIQUIDITY RISK LOCAL AGENTS MARKET ECONOMIES MARKET PARTICIPANTS MONETARY AUTHORITIES MONETARY POLICY MUTUAL FUNDS NATIONAL PAYMENT SYSTEMS NET SETTLEMENT NET SETTLEMENT SYSTEMS NETTING NOVATION OPERATIONAL COSTS OTC OVER THE COUNTER PAYMENT SYSTEMS PAYMENTS SYSTEMS PENSION FUNDS PHYSICAL SECURITIES REAL TIME GROSS SETTLEMENT REGULATORY FRAMEWORK RISK MANAGEMENT RISK MITIGATION RTGS SADC SAFEKEEPING SAVINGS SECURITIES SECURITIES COMMISSIONS SECURITIES LENDING SECURITIES MARKETS SETTLEMENT RISKS SETTLEMENT SYSTEMS SOUTHERN AFRICAN DEVELOPMENT COMMUNITY STOCK EXCHANGES SYSTEMIC RISK TRADEOFFS 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? 2014-08-26T15:51:08Z 2014-08-26T15:51:08Z 2001-04 http://documents.worldbank.org/curated/en/2001/04/1089539/securities-clearance-settlement-systems-guide-best-practices http://hdl.handle.net/10986/19684 English en_US Policy Research Working Paper;No. 2581 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank, Washington, DC Publications & Research :: Policy Research Working Paper Publications & Research Caribbean Latin America
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	English en_US
topic	ASSURANCE BANK FOR INTERNATIONAL SETTLEMENTS BANKRUPTCY BANKS BATCH PROCESSING CAPITAL MARKETS CEMLA CENTRAL BANKS CLEARING ARRANGEMENTS CLEARINGHOUSES COMMITTEE ON PAYMENT AND SETTLEMENT SYSTEMS COUNTERPARTY COUNTERPARTY RISK MANAGEMENT CPSS CSD CUSTODIAN CUSTODIANS CUSTODY DEALERS DEBT DELIVERY VERSUS PAYMENT DEPOSITORY DEPOSITS DERIVATIVES DIGITAL SIGNATURES DIRECT PARTICIPANTS DISCHARGE DIVIDENDS DVP EMEAP EMERGING MARKET ECONOMIES EUROPEAN MONETARY INSTITUTE FINAL TRANSFER FINANCIAL INSTITUTIONS FINANCIAL SECTOR FUNDS BALANCES FUNDS TRANSFER FUNDS TRANSFER SYSTEMS FUNDS TRANSFERS GOVERNMENT SECURITIES GRIDLOCK GROSS SETTLEMENT SYSTEM GROSS SETTLEMENT SYSTEMS GROUP OF TEN ICSD IMMOBILIZATION INCOME INDIRECT PARTICIPANTS INSURANCE INSURANCE COMPANIES INTEREST PAYMENTS INTRADAY LIQUIDITY ISIN ISSUERS LEGAL FRAMEWORK LIQUIDITY LIQUIDITY RISK LOCAL AGENTS MARKET ECONOMIES MARKET PARTICIPANTS MONETARY AUTHORITIES MONETARY POLICY MUTUAL FUNDS NATIONAL PAYMENT SYSTEMS NET SETTLEMENT NET SETTLEMENT SYSTEMS NETTING NOVATION OPERATIONAL COSTS OTC OVER THE COUNTER PAYMENT SYSTEMS PAYMENTS SYSTEMS PENSION FUNDS PHYSICAL SECURITIES REAL TIME GROSS SETTLEMENT REGULATORY FRAMEWORK RISK MANAGEMENT RISK MITIGATION RTGS SADC SAFEKEEPING SAVINGS SECURITIES SECURITIES COMMISSIONS SECURITIES LENDING SECURITIES MARKETS SETTLEMENT RISKS SETTLEMENT SYSTEMS SOUTHERN AFRICAN DEVELOPMENT COMMUNITY STOCK EXCHANGES SYSTEMIC RISK TRADEOFFS
spellingShingle	ASSURANCE BANK FOR INTERNATIONAL SETTLEMENTS BANKRUPTCY BANKS BATCH PROCESSING CAPITAL MARKETS CEMLA CENTRAL BANKS CLEARING ARRANGEMENTS CLEARINGHOUSES COMMITTEE ON PAYMENT AND SETTLEMENT SYSTEMS COUNTERPARTY COUNTERPARTY RISK MANAGEMENT CPSS CSD CUSTODIAN CUSTODIANS CUSTODY DEALERS DEBT DELIVERY VERSUS PAYMENT DEPOSITORY DEPOSITS DERIVATIVES DIGITAL SIGNATURES DIRECT PARTICIPANTS DISCHARGE DIVIDENDS DVP EMEAP EMERGING MARKET ECONOMIES EUROPEAN MONETARY INSTITUTE FINAL TRANSFER FINANCIAL INSTITUTIONS FINANCIAL SECTOR FUNDS BALANCES FUNDS TRANSFER FUNDS TRANSFER SYSTEMS FUNDS TRANSFERS GOVERNMENT SECURITIES GRIDLOCK GROSS SETTLEMENT SYSTEM GROSS SETTLEMENT SYSTEMS GROUP OF TEN ICSD IMMOBILIZATION INCOME INDIRECT PARTICIPANTS INSURANCE INSURANCE COMPANIES INTEREST PAYMENTS INTRADAY LIQUIDITY ISIN ISSUERS LEGAL FRAMEWORK LIQUIDITY LIQUIDITY RISK LOCAL AGENTS MARKET ECONOMIES MARKET PARTICIPANTS MONETARY AUTHORITIES MONETARY POLICY MUTUAL FUNDS NATIONAL PAYMENT SYSTEMS NET SETTLEMENT NET SETTLEMENT SYSTEMS NETTING NOVATION OPERATIONAL COSTS OTC OVER THE COUNTER PAYMENT SYSTEMS PAYMENTS SYSTEMS PENSION FUNDS PHYSICAL SECURITIES REAL TIME GROSS SETTLEMENT REGULATORY FRAMEWORK RISK MANAGEMENT RISK MITIGATION RTGS SADC SAFEKEEPING SAVINGS SECURITIES SECURITIES COMMISSIONS SECURITIES LENDING SECURITIES MARKETS SETTLEMENT RISKS SETTLEMENT SYSTEMS SOUTHERN AFRICAN DEVELOPMENT COMMUNITY STOCK EXCHANGES SYSTEMIC RISK TRADEOFFS Guadamillas, Mario Keppler, Robert Securities Clearance and Settlement Systems : A Guide to Best Practices
geographic_facet	Caribbean Latin America
relation	Policy Research Working Paper;No. 2581
description	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?
format	Publications & Research :: Policy Research Working Paper
author	Guadamillas, Mario Keppler, Robert
author_facet	Guadamillas, Mario Keppler, Robert
author_sort	Guadamillas, Mario
title	Securities Clearance and Settlement Systems : A Guide to Best Practices
title_short	Securities Clearance and Settlement Systems : A Guide to Best Practices
title_full	Securities Clearance and Settlement Systems : A Guide to Best Practices
title_fullStr	Securities Clearance and Settlement Systems : A Guide to Best Practices
title_full_unstemmed	Securities Clearance and Settlement Systems : A Guide to Best Practices
title_sort	securities clearance and settlement systems : a guide to best practices
publisher	World Bank, Washington, DC
publishDate	2014
url	http://documents.worldbank.org/curated/en/2001/04/1089539/securities-clearance-settlement-systems-guide-best-practices http://hdl.handle.net/10986/19684
_version_	1764440319289458688

Securities Clearance and Settlement Systems : A Guide to Best Practices

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