Clearance and Settlement for Government Securities. June 17-19, 2003 Johannesburg, South Africa Noritaka Akamatsu Financial Sector Operations and Policy The World Bank. Agenda. Why efficient C&S is important for GS market Criticality of Delivery versus Payments (DVP) for GS market
Clearance and Settlement for Government Securities
June 17-19, 2003
Johannesburg, South Africa
Financial Sector Operations and Policy
The World Bank
CPSS-IOSCO Recommendations addresses
The secondary market would fail to develop beyond a small group of large banks/institutions.
Q.Which is better and why?
Types of institutions
Q. Which institution plays what C&S functions?
Examples of CSDs having government securities
Consolidation in Europe
SLB, repo clearing, collateral management and cross margining.
Q. Consistent / relevant with the fundamental mission of the Central Bank?
A. Partially “Yes” (e.g., management of systemic risk) and partially “No”.
Q.What value would CCP add over and beyond what is already achieved by DVP?