Organizing Central Securities Depositories in Developing Markets

Organizing Central Securities Depositories in Developing Markets—7 Considerations

By Froukelien Wendt, Peter Katz, Alice Zanza

March 20, 2018

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Format: Chicago

Froukelien Wendt, Peter Katz, and Alice Zanza. Organizing Central Securities Depositories in Developing Markets—7 Considerations, (USA: International Monetary Fund, 2018) accessed December 21, 2024

Also available in: français

Disclaimer: IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.

Summary

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.

Subject: Central securities depositories, Financial institutions, Financial markets, Government securities, Securities, Securities markets, Stock markets

Keywords: BNR authorities, Central securities depositories, Clearing, CSD function, CSD operation, CSD operator, CSD technology, Europe, Financial market, Financial market development, Fixed cost, Global, Government securities, Government securities, Government securities market, Ownership structure, Private sector, Securities, Securities markets, Securities transaction, Settlement system, Single CSD, Stock markets, WP

Publication Details

Pages:

40
Volume:

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DOI:

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Issue:

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Series:

Working Paper No. 2018/066
Stock No:

WPIEA2018066
ISBN:

9781484345276
ISSN:

1018-5941

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