securities settlement systems in latin-america world bank global survey 2010
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Securities Settlement Systems in Latin-America World Bank Global Survey 2010. ACSDA 3rd. Leadership Forum Buenos Aires, 9 November 2011 Corina Arteche Serra PSDG - The World Bank. The World Bank – Global Survey 2010. Answers received from 132 Central Banks, representing 139 countries - PowerPoint PPT PresentationTRANSCRIPT
Securities Settlement Systems in
Latin-America
World Bank Global Survey 2010
ACSDA
3rd. Leadership Forum Buenos Aires, 9 November 2011
Corina Arteche Serra
PSDG - The World Bank
The World Bank – Global Survey 2010 Answers received from 132 Central Banks, representing 139 countries
Topic Covered:i. Legal and Regulatory Frameworkii. Large-Value Funds Transfer Systemsiii. Retail Payment Systemsiv. Foreign Exchange Settlement Systemsv. Cross-border Payments and International Remittancesvi. Securities Settlement Systemsvii. Payment System Oversight and Cooperationviii. Planned and On-going Reforms to the National Payments System
New Annex 1 Survey on innovations in retail payments . Annex 1 is divided into 5 key areas
i. Type of Productsii. Design Features of the Productsiii. Legal and Regulatory Frameworkiv. Statisticsv. Planned Reforms/New Products
2
Securities Settlement Systems
3
Securities Settlement Systems: Legal and Regulatory FrameworkGlobal Survey 2010
4
Total: 56 LAC: 6
0% 10% 20% 30% 40% 50% 60% 70% 80%
Specific authority
Cooperation with CB
Stock exchange regulation
CSD regulation
CCP regulation
Securities Settlement Systems: General FeaturesGlobal Survey 2010
5
Total: 119 LAC: 17
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
One or more stockexchanges
Majority of securitiesare dematerialized inone or more CSDs
Single CSD for alltypes of securities
Two or more CSDs,handling only certaintypes of securities
Two or more CSDs,handling all types of
securities
General features of Securities Clearing and Settlement SystemsGlobal Survey 2010
6
Total: 119 LAC: 17
0%
10%
20%
30%
40%
50%
60%
70%
one or more clearing institution one or more CCPs At least one SSS does not directlysettle in Central Bank money
Central Securities Depositories
7
CSD: General featuresGlobal Survey 2010
8
Total: 149 LAC: 22
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Government securities
Corporate securities
Government and corporatesecurities
CSD is operated by the CentralBank
CSD is operated by the StockExchange
CSD is operated by another privateentity
ownership transfers fromsecondary market transactions
The CSD is used for securitiestraded at the stock exchange only
CSD: Risk Management FeaturesGlobal Survey 2010
9
Total: 149 LAC: 22
0% 10% 20% 30% 40% 50% 60% 70%
Cycle of T+3 or shorter is used forall securities trades
CSD has a real-time interface withthe RTGS
Model 1 DVP
Model 2 DVP
Model 3 DVP
NoDVP
CSD: Business ContinuityGlobal Survey 2010
10
Total: 149 LAC: 22
0% 10% 20% 30% 40% 50% 60% 70% 80% 90%
periodic data back-ups
Storage media are kept in sitesother than the main processing
site
Documented business continuityplan
Business continuity arrangementsare regularly tested
Central Counterparties
11
CCP: General FeaturesGlobal Survey 2010
12
Total: 56 LAC: 6
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
The CCP operates in more than onejurisdiction
CCP rules clarify the contractual relationships
The CCP provides multilateralnetting facilities
Commercial banks are direct participants
Broker-dealers are direct participants
Other financial institutions can bedirect participants
There are minimum capital requirements
CCP: Management risk featuresGlobal Survey 2010
13
Total: 56 LAC: 6
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
There is a guarantee fund,
Other financial resources
CCP conducts regular stress tests
There is a method for identifyingthat default
The CCP uses a CSD thatprovides DVP
Payment obligations are directlysettled in Central Bank money
CCP: Business ContinuityGlobal Survey 2010
14
Total: 56 LAC: 6
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Periodic data back-ups Storage media are keptin sites other than themain processing site
The CCP hasdocumented a formalbusiness continuity
plan
Business continuityarrangements areregularly tested
The Global Survey shows increased compliance with some of the international standards however some improvements are still necessary.
Legal and Regulatory Framework: custody arrangements, multilateral netting arrangements and bankruptcy procedures
Cooperation arrangements between the Central bank and the Security Regulator
SSS and funds transfer (payment) systems are not adequately integrated
Risk control mechanisms for CSD and CCP
Conclusions
15
Thank youCorina Arteche
[email protected] Systems Development Group
The World Bank
www.worldbank.org/paymentsystems
PPP Goals
16