By Bob Hills and Chris Young of the Bank’s Payment and Settlement Policy Division.
The article outlines recent developments and new initiatives in cross-border securities settlement and derivatives clearing. It suggests that competition for post-EMU business is already resulting in increased co-operation, in the form of links between systems. These developments have implications for the risks in cross-border clearing and settlement and for market structure, and raise issues for central banks and regulators.
Competition and co-operation: developments in cross-border securities settlement and derivatives clearing