IDEAS home Printed from https://ideas.repec.org/a/aza/jsoc00/y2023v15i4p315-324.html
   My bibliography  Save this article

Cross-border clearing: Implications for developing markets

Author

Listed:
  • Greenwood, Alicia

    (JSE, South Africa)

Abstract

The widespread introduction of central clearing in many jurisdictions has introduced the benefits of more robust and transparent risk management for markets, with the ultimate objective of improving investor protection. All jurisdictions wish to optimise an ‘open for business’ model that attracts international flows and supports deep, liquid and high-quality markets. The inconsistent adoption of central clearing by different jurisdictions may, however, introduce market fragmentation effects and negatively affect liquidity. Liquidity pools may move away from jurisdictions where central clearing requirements are more onerous than in other jurisdictions, or where central clearing has not yet been adopted at all. Jurisdictions must ensure a considered approach when reconciling their local regulatory and market expectations with cross-border and global clearing expectations, and the impact this may introduce to trading behaviour.

Suggested Citation

  • Greenwood, Alicia, 2023. "Cross-border clearing: Implications for developing markets," Journal of Securities Operations & Custody, Henry Stewart Publications, vol. 15(4), pages 315-324, September.
    • Handle: RePEc:aza:jsoc00:y:2023:v:15:i:4:p:315-324
    as

    Download full text from publisher

    File URL: https://hstalks.com/article/8064/download/
    Download Restriction: Requires a paid subscription for full access.
    File URL: https://hstalks.com/article/8064/
    Download Restriction: Requires a paid subscription for full access.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item

    Keywords

    central clearing; regulatory equivalence; market fragmentation;
    All these keywords.

    JEL classification:

    • G2 - Financial Economics - - Financial Institutions and Services
    • E5 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit
    • K22 - Law and Economics - - Regulation and Business Law - - - Business and Securities Law

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:aza:jsoc00:y:2023:v:15:i:4:p:315-324. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Henry Stewart Talks (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.