Clearing, Settlement and Custody


  • David Loader, Director of DSC Portfolio Ltd. and Loader Associates Ltd.

Four new chapters and updates throughout help this 2e of Clearing, Settlement and Custody summarize worldwide changes in the process of concluding a financial transaction. Noted consultant David Loader provides a highly detailed analysis of the central clearing counterparty concept, the drivers behind it, and its effects on operations teams. He also clearly illustrates the life cycle of a series of transactions to broaden the comparison process.

Emphasizing changes in the regulatory environment stemming from the 2008 market crash and liquidity crisis, this edition uses new case studies and end-of-chapter quizzes to explore the transaction value chain of trading, clearing, settlement, and custody. Students and professionals in the financial field will benefit from the book's description of the industry and the details of financial innovation and regulatory response, with their many implications.

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Finance and business school upper-division undergraduates and graduate students preparing for careers in the financial industry.  Finance industry professionals working in financial market operations.  


Book information

  • Published: October 2013
  • ISBN: 978-0-08-098333-2


"David Loader introduces us to the glamour of the back-office. Using clear examples and useful case studies he takes us through the process of clearing and settlement. After reading the book, the reader will have a good understanding of how things actually work, why back-office matters a great deal, and why the recent changes in the regulatory landscape will affect some financial markets in important ways. This is a must-read for beginners and a useful reference."  --Cyril Monnet, University of Bern

"David Loader details what happens after a trade has been matched:  Post-trading is getting increasingly complex and important for the functioning of global financial markets.  It is therefore tremendously helpful to get an all-embracing overview of functions, processes, institutions, and regulation."  --Torsten Schaper, Deutsche Börse AG

Table of Contents

1 - The structure of clearing and settlement

2 - The role of the clearing house, trade repositories and central securities depositories

3 - Bond Settlement

4 - Equity clearing and settlement

5 - Clearing and Settlement of Derivatives

6 - Custody services

7 - Securities Lending

8 - Settlement of Portfolio Transactions and Subscription/Redemption of Shares and Units in Investment Funds

9 - Risk and Regulation