CAPITAL MARKETS
IMF/AMF
Regulators
Refer also to Financial Services regulation
Associations
- ISDA - International Swaps and Derivatives Association - reducing counterparty credit risk, increasing transparency, and improving the industry’s operational infrastructure
- ISSA - International Security Services Association - 1979, foundation: Citibank, Deutsche Bank and UBS
- ISSA - DLT working group
Markets & stock exchanges
Information providers - indexes
Brokers - providing access to the markets
Clearing & settlement - payments
- ECB TARGET2 the European bank2bank payment settlement system, a real-time gross settlement system (RTGS)
- Owned and managed by the Eurosystem
- TARGET2 was launched on 19 November 2007 and fully replaced the first-generation TARGET by May 2008
- Used by EU central banks and their national communities of commercial banks. More than 1,700 banks use TARGET2 to initiate transactions in euro, either on their own behalf or on behalf of their customers. Taking into account branches and subsidiaries, more than 55,000 banks can be reached via TARGET2
- How it works:
- Bank A and Bank B both have accounts with a central bank
- A payment in euro is to be made from Bank A to Bank B
- Bank A submits the payment instructions to TARGET2
- Bank A’s account is debited, and Bank B’s account is credited – the payment is settled
- TARGET2 transfers the payment information to Bank B
- EBA Clearing - Euro Banking Association's Clearing company
- owned by 51 of the major banks operating in Europe, founded in 1998
- provides pan-European payment infrastructure solutions
- EURO1, the only private sector large-value payment system for single same-day euro transactions at a pan-European level
- STEP2, a pan-European retail payment platform, which provides access to more than 4,800 financial institutions across Europe for processing credit transfers and direct debits in euro
- RT1, a pan-European real-time payment infrastructure platform for euro transactions (launched November 2017)
Clearing & settlement - securities - CSDs
A central securities depository (CSD) holds securities such as shares
either in certificated or uncertificated (dematerialized) form so that ownership can be easily transferred through a book entry rather than the transfer
of physical certificates. This allows brokers and financial companies to hold their securities at one location where they can be available
for clearing and settlement. This is usually done electronically, making it much faster and easier than was traditionally the case
where physical certificates had to be exchanged after a trade had been completed.
In some cases these organizations also carry out centralized comparison, and transaction processing such as clearing and settlement of securities transfers, securities pledges, and securities freezes.
International CSDs include:
- ECB's T2S
- TARGET2-Securities offers 'delivery versus payment' (DvP)
for securities
- T2S is owned by the Eurosystem and run by four Eurosystem central banks (France, Germany, Italy and Spain) with the ECB coordinating
- T2S was launched in 2015
- T2S is used by 20 European countries
- users need a securities account with one of the central securities depositories (CSDs) connected to T2S and a dedicated cash account with one of the central banks connected to the platform
- Banks pay for securities on the platform using the account they have with their central bank, so the money used to settle transactions is central bank money. As a result, transaction risk is greatly reduced
- Euroclear Group, started by Morgan, privately owned by more than a hundred shareholders, includes the national CSDs Euroclear Belgium, Euroclear France, Euroclear Nederland, Euroclear UK and Ireland Euroclear, as well as Euroclear Bank
- Before Euroclear, settlement required the physical delivery of certificates and cash. Trading was hampered by delays in the delivery of securities, the loss of certificates,
and excessive counterparty and market risks.
The Euroclear System was founded in December 1968. The system minimised risk as transactions within the system settled delivery versus payment (DVP).
This means that cash and securities are exchanged simultaneously, in electronic book-entry form.
Today, the Euroclear group not only settles eurobonds, but a wide range of asset classes, including equities, funds and derivatives.
- Clearstream - Cedel+Deutsche Borse
- SIX SIS- CH
Other
SWIFT
- SWIFT - the message engine with added value services
- Messaging services went live in 1977 to replace the Telex technology then widely used by banks to communicate instructions related to cross-border
transfers. It acts as the primary communications channel for financial institutions engaged in correspondent banking all around the world,
and transmits financial messages relating to payments, securities, treasury and trade
- FIN is the longest established of the messaging services. It enables the exchange of messages formatted with the traditional SWIFT MT standards.
FIN enables the exchange of messages on a message-per-message basis, and supports the exchange of proprietary formats between market infrastructures and their customers.
It also works in store-and-forward mode and offers extensive functionalities, such as message copy, broadcasts to groups of other users, and online retrieval of previously-exchanged messages
- InterAct offers increased flexibility, including store-and-forward messaging, real-time messaging, and real-time query-and-response options.
The InterAct service enables the exchange of MX message types, which are expressed in XML syntax and developed in accordance with the ISO 20022 standard methodology
- FileAct enables the transfer of files, such as bulk payment files, very large reports, or operational data
- WebAccess allows SWIFTNet users to browse securely on financial web sites available on SWIFTNet using standard Internet technologies and protocols
Service providers/consulting/other