Guadamillas, MarioKeppler, Robert2014-08-262014-08-262001-04https://hdl.handle.net/10986/19684As 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?en-USCC BY 3.0 IGOASSURANCEBANK FOR INTERNATIONAL SETTLEMENTSBANKRUPTCYBANKSBATCH PROCESSINGCAPITAL MARKETSCEMLACENTRAL BANKSCLEARING ARRANGEMENTSCLEARINGHOUSESCOMMITTEE ON PAYMENT AND SETTLEMENT SYSTEMSCOUNTERPARTYCOUNTERPARTY RISK MANAGEMENTCPSSCSDCUSTODIANCUSTODIANSCUSTODYDEALERSDEBTDELIVERY VERSUS PAYMENTDEPOSITORYDEPOSITSDERIVATIVESDIGITAL SIGNATURESDIRECT PARTICIPANTSDISCHARGEDIVIDENDSDVPEMEAPEMERGING MARKET ECONOMIESEUROPEAN MONETARY INSTITUTEFINAL TRANSFERFINANCIAL INSTITUTIONSFINANCIAL SECTORFUNDS BALANCESFUNDS TRANSFERFUNDS TRANSFER SYSTEMSFUNDS TRANSFERSGOVERNMENT SECURITIESGRIDLOCKGROSS SETTLEMENT SYSTEMGROSS SETTLEMENT SYSTEMSGROUP OF TENICSDIMMOBILIZATIONINCOMEINDIRECT PARTICIPANTSINSURANCEINSURANCE COMPANIESINTEREST PAYMENTSINTRADAY LIQUIDITYISINISSUERSLEGAL FRAMEWORKLIQUIDITYLIQUIDITY RISKLOCAL AGENTSMARKET ECONOMIESMARKET PARTICIPANTSMONETARY AUTHORITIESMONETARY POLICYMUTUAL FUNDSNATIONAL PAYMENT SYSTEMSNET SETTLEMENTNET SETTLEMENT SYSTEMSNETTINGNOVATIONOPERATIONAL COSTSOTCOVER THE COUNTERPAYMENT SYSTEMSPAYMENTS SYSTEMSPENSION FUNDSPHYSICAL SECURITIESREAL TIME GROSS SETTLEMENTREGULATORY FRAMEWORKRISK MANAGEMENTRISK MITIGATIONRTGSSADCSAFEKEEPINGSAVINGSSECURITIESSECURITIES COMMISSIONSSECURITIES LENDINGSECURITIES MARKETSSETTLEMENT RISKSSETTLEMENT SYSTEMSSOUTHERN AFRICAN DEVELOPMENT COMMUNITYSTOCK EXCHANGESSYSTEMIC RISKTRADEOFFS10.1596/1813-9450-2581