Links between securities settlement systems : An oligopoly theoretic approach

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Title: Links between securities settlement systems : An oligopoly theoretic approach
ISBN: 952-462-018-9
Author: Kauko, Karlo
Organization: Suomen Pankki
Series: Suomen Pankin keskustelualoitteita
ISSN: 0785-3572
Series year: 2002
Series number: 27/2002
Year of publication: 2002
Publication date: 22.10.2002
Published in: Published in International Review of Financial Analysis, Vol. 13, Issue 5, 2004: 585-600
Pages: 29 s.
Keywords: arvopaperit; mallit; oligopoli; arvopapereiden selvitysjärjestelmät
JEL: L13; G20
Abstract: This paper presents a duopoly model of the securities settlement industry.Because pooling a large amount of payments can help in using liquidity efficiently, issuers prefer systems where a large number of securities are issued.If the central securities depositories establish a mutual link that enables investors to make transactions with foreign securities, cost savings can be achieved. However, these links may have unexpected effects on CSDs' pricing, and the issuers' share of the fee burden can increase substantially.It is not advisable to ban additional fees for using the link, as the CSDs might simply increase the fee for domestic transactions. Key words: oligopoly, securities settlement systems JEL classification numbers: L13, G20
Note: Ilmestynyt myös kirjassa Mayes, David G. (ed) & Wood, Geoffrey E. (ed.): The structure of financial regulation (2007).
Rights: https://helda.helsinki.fi/bof/copyright


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