IDEAS home Printed from https://ideas.repec.org/p/imf/imfwpa/2018-066.html
   My bibliography  Save this paper

Organizing Central Securities Depositories in Developing Markets—7 Considerations

Author

Listed:
  • Ms. Froukelien Wendt
  • Peter Katz
  • Alice Zanza

Abstract

Central securities depositories (CSDs) are systemically important entities that are critical for effective implementation of monetary policy, the credibility of a government’s debt management program, collateral management, and safe and efficient securities markets. Authorities in developing markets, in particular central banks, may grapple with the following issues: i) whether to pursue a single CSD for all types of securities to increase market efficiencies and benefit from economies of scale; and ii) whether to partake in the governance of the CSD as owner and/or operator. This paper develops seven considerations that authorities may take into account in addressing these issues and finding the best model for their country. These may point to different solutions for different countries, depending in part on the size of markets, strength of private operators and level of market development.

Suggested Citation

  • Ms. Froukelien Wendt & Peter Katz & Alice Zanza, 2018. "Organizing Central Securities Depositories in Developing Markets—7 Considerations," IMF Working Papers 2018/066, International Monetary Fund.
    • Handle: RePEc:imf:imfwpa:2018/066
    as

    Download full text from publisher

    File URL: http://www.imf.org/external/pubs/cat/longres.aspx?sk=45687
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Heiko Schmiedel & Markku Malkamäki & Juha Tarkka, 2004. "Economies of scale and technological development in securities depository and settlement systems," Microeconomics 0405002, University Library of Munich, Germany.
    2. The Giovannini Group, 2002. "Cross-border clearing and settlement arrangements in the European Union," European Economy - Economic Papers 2008 - 2015 163, Directorate General Economic and Financial Affairs (DG ECFIN), European Commission.
    3. Heiko Schmiedel & Markku Malkamäki & Juha Tarkka, 2004. "Economies of scale and technological development in securities depository and settlement systems," Microeconomics 0405001, University Library of Munich, Germany.
    4. Russo, Daniela & Hart, Terry L. & Malaguti, Maria Chiara & Papathanassiou, Chryssa, 2004. "Governance of securities clearing and settlement systems," Occasional Paper Series 21, European Central Bank.
    5. repec:zbw:bofism:2004_028 is not listed on IDEAS
    6. Mr. Dong He & Mr. Ross B Leckow & Mr. V. Haksar & Mr. Tommaso Mancini-Griffoli & Nigel Jenkinson & Ms. Mikari Kashima & Mr. Tanai Khiaonarong & Ms. Celine Rochon & Hervé Tourpe, 2017. "Fintech and Financial Services: Initial Considerations," IMF Staff Discussion Notes 2017/005, International Monetary Fund.
    7. World Bank & International Monetory Fund, 2001. "Developing Government Bond Markets : A Handbook," World Bank Publications - Books, The World Bank Group, number 13865, December.
    8. Asian Development Bank (ADB), 2014. "Basic Principles on Establishing a Regional Settlement Intermediary and Next Steps Forward: Cross-border Settlement Infrastructure Forum," ADB Reports RPT146418-2, Asian Development Bank (ADB), revised 24 Jun 2014.
    9. Mr. Elias G. Kazarian, 2006. "Integration of the Securities Market Infrastructure in the European Union: Policy and Regulatory Issues," IMF Working Papers 2006/241, International Monetary Fund.
    10. Van Cayseele, Patrick & Wuyts, Christophe, 2007. "Cost efficiency in the European securities settlement and depository industry," Journal of Banking & Finance, Elsevier, vol. 31(10), pages 3058-3079, October.
    11. Daniela Russo & Terry L. Hart & Chryssa Papathanassiou, 2004. "Governance of securities clearing and settlement systems," Occasional Paper Series 21, European Central Bank.
    12. Biagio Bossone & Jong-Kun Lee, 2004. "In Finance, Size Matters," IMF Staff Papers, Palgrave Macmillan, vol. 51(1), pages 1-2.
    13. Dong He & Ross B Leckow & Vikram Haksar & Tommaso Mancini Griffoli & Nigel Jenkinson & Mikari Kashima & Tanai Khiaonarong & Celine Rochon & Hervé Tourpe, 2017. "Fintech and Financial Services; Initial Considerations," IMF Staff Discussion Notes 17/05, International Monetary Fund.
    14. Guadamillas, Mario & Keppler, Robert, 2001. "Securities clearance and settlement systems - a guide to best practices," Policy Research Working Paper Series 2581, The World Bank.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Georgios Pavlidis, 2020. "A European Mechanism for the Issuance and Initial Distribution of Debt Securities," Intereconomics: Review of European Economic Policy, Springer;ZBW - Leibniz Information Centre for Economics;Centre for European Policy Studies (CEPS), vol. 55(3), pages 187-191, May.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Schmiedel, Heiko & Malkamaki, Markku & Tarkka, Juha, 2006. "Economies of scale and technological development in securities depository and settlement systems," Journal of Banking & Finance, Elsevier, vol. 30(6), pages 1783-1806, June.
    2. N'dri, Lasme Mathieu & Kakinaka, Makoto, 2020. "Financial inclusion, mobile money, and individual welfare: The case of Burkina Faso," Telecommunications Policy, Elsevier, vol. 44(3).
    3. Ongo Nkoa, Bruno Emmanuel & Song, Jacques Simon, 2020. "Does institutional quality affect financial inclusion in Africa? A panel data analysis," Economic Systems, Elsevier, vol. 44(4).
    4. Reiner Martin & Moreno Roma & Isabel Vansteenkiste, 2005. "Regulatory reforms in selected EU network industries," Occasional Paper Series 28, European Central Bank.
    5. Winkler, Adalbert & Geis, André & Böwer, Uwe, 2007. "Commodity price fluctuations and their impact on monetary and fiscal policies in Western and Central Africa," Occasional Paper Series 60, European Central Bank.
    6. Agur, Itai & Ari, Anil & Dell’Ariccia, Giovanni, 2022. "Designing central bank digital currencies," Journal of Monetary Economics, Elsevier, vol. 125(C), pages 62-79.
    7. Russo, Daniela & Caviglia, Giacomo & Papathanassiou, Chryssa & Rosati, Simonetta, 2007. "Prudential and oversight requirements for securities settlement," Occasional Paper Series 76, European Central Bank.
    8. Uddin, Md Hamid & Mollah, Sabur & Islam, Nazrul & Ali, Md Hakim, 2023. "Does digital transformation matter for operational risk exposure?," Technological Forecasting and Social Change, Elsevier, vol. 197(C).
    9. Julia Bersch & Jean François Clevy & Naseem Muhammad & Mrs. Esther Perez Ruiz & Mr. Yorbol Yakhshilikov, 2021. "Fintech Potential for Remittance Transfers: A Central America Perspective," IMF Working Papers 2021/175, International Monetary Fund.
    10. Wolswijk, Guido & de Haan, Jakob, 2005. "Government debt management in the euro area - recent theoretical developments and changes in practices," Occasional Paper Series 25, European Central Bank.
    11. Fred Huibers, 2021. "Regulatory Response to the Rise of Fintech Credit in The Netherlands," JRFM, MDPI, vol. 14(8), pages 1-12, August.
    12. Adalbert Winkler & Roland Beck, 2006. "Macroeconomic and financial stability challenges for acceding and candidate countries," Occasional Paper Series 48, European Central Bank.
    13. Willman, Alpo & Whelan, Karl & Altissimo, Filippo & Georgiou, Evaggelia & Sastre, Teresa & Valderrama, Maria Teresa & Sterne, Gabriel & Stocker, Marc & Weth, Mark, 2005. "Wealth and asset price effects on economic activity," Occasional Paper Series 29, European Central Bank.
    14. Thimann, Christian & Drage, John & Nikitin, Minna & Just, Christian & Pauli, Rolf & Committeri, Marco & Weber, Pierre-François & Fernández de Lis, Santiago & von Stenglin, Stephan & Hollensen, Ole & B, 2005. "Managing financial crises in emerging market economies - experience with the involvement of private sector creditors," Occasional Paper Series 32, European Central Bank.
    15. Guido Wolswijk & Jakob de Haan, 2005. "Government debt management in the euro area - recent theoretical developments and changes in practices," Occasional Paper Series 25, European Central Bank.
    16. González, Fernando & Coppens, François & Winkler, Gerhard, 2007. "The performance of credit rating systems in the assessment of collateral used in Eurosystem monetary policy operations," Occasional Paper Series 65, European Central Bank.
    17. Henrik Enderlein & Johannes Lindner & Oscar Calvo-Gonzales & Raymond Ritter, 2006. "The EU Budget: How much Scope for Institutional Reform?," Contributions to Economic Analysis, in: Designing the New European Union, pages 129-159, Emerald Group Publishing Limited.
    18. Schuknecht, Ludger & Morris, Richard & Ongena, Hedwig, 2006. "The reform and implementation of the Stability and Growth Pact," Occasional Paper Series 47, European Central Bank.
    19. Ms. Inutu Lukonga, 2018. "Fintech, Inclusive Growth and Cyber Risks: Focus on the MENAP and CCA Regions," IMF Working Papers 2018/201, International Monetary Fund.
    20. di Mauro, Filippo & Baumann, Ursel, 2007. "Globalisation and euro area trade - interactions and challenges," Occasional Paper Series 55, European Central Bank.

    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:imf:imfwpa:2018/066. 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.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with 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: Akshay Modi (email available below). General contact details of provider: https://edirc.repec.org/data/imfffus.html .

    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.