• View the Talks
• 39 min
  1. Large value payment systems and the role of regulation

  • Mr. Mark Manning
• 45 min
  2. Clearing and settlement systems and the role of regulation

  • Prof. Alistair Milne
• 38 min
  3. The economics of retail payments: theory and practice

  • Mr. Sujit Chakravorti
• 49 min
  4. Continuous linked settlement (CLS)

  • Mr. Morten Bech
  • Mr. Antoine Martin
• 36 min
  5. Operational outages in large value payment systems

  • Dr. David Mills
• 44 min
  6. Interaction between private and public systems

  • Mr. John Trundle
• 40 min
  7. Financial crises, payment system risk and oversight

  • Mr. Sean O'Connor
• 27 min
  8. The interdependencies of payment and settlement systems

  • Ms. Daniela Russo
• 48 min
  9. A review of related empirical research on retail payments

  • Dr. Jonathan Zinman
• 52 min
  10. Simulation as a tool in studying payment and settlement systems

  • Mr. Harry Leinonen

Printable Handouts

PDF

Navigable Slide Index

1. Introduction
2. The six steps of a securities trade
3. The six steps - information flow diagram (1)
4. Regulatory concerns
5. Some further reading
6. Agenda
7. Clearing and counterparty risks
8. What is counterparty risk?
9. Reducing c/p risk via netting
10. Netting in OTC markets
11. Reducing c/p risk via collateral
12. The central counterparty
13. Historical development
14. Main central counterparties (CCPs)
15. Core functions
16. CCP and risk reduction
17. CCP and OTC markets
18. Settlement and securities ownership
19. Central securities depositories
20. Main CSDs
21. Key legal concept: "fungibility"
22. Other services
23. Competition issues
24. Depository vs. agency bank
25. Nature of competition
26. The players
27. Other aspects of this competition
28. Structure
29. Contrast with US clearing and settlement system
30. Horizontal integration of CSDs
31. Competition and CCPs
32. System wide risks
33. Who are the regulators?
34. Settlements
35. DvP and principal risk
36. Systemic risk in the CCP
37. Credit crisis: Lehman and AIG
38. New proposals
39. Summary
40. The six steps - information flow diagram (2)

Topics Covered

• The different post-trade processes that occur after the execution of a securities trade
• Key participants in clearing and settlement of the broker, custodian, central counterparty, commercial bank, and central security depository
• The risks in clearing and settlement, from the perspective both of the broker conducting the trade and for the system as a whole
• The different arrangements used to control these risks
• Is there effective competition in clearing and settlement

Links

Series:

• Effective Oversight of Payment and Settlement Systems

Categories:

• Finance, Accounting & Economics

Talk Citation

Publication History

• Published on March 31, 2010