By
David Loader, Managing Director, Derivatives Management Services, London
Description
'Clearing, Settlement and Custody' focuses on the clearing, settlement and custody functions by analyzing how they work and the interaction
between the organizations involved. The author examines the roles of clearing houses, central counterparties, central securities depositories
and the custodians, as well as, assessing the impact on the workflow and procedures in the operations function at banks, brokers and
institutions. The changes that are taking place in the industry are explored and the impact for operations managers and supervisors assessed.
Clearing, settlement and custody is at the heart of everything that happens in the financial markets. The evolution of clearing
and settlement is one that is still happening and as such, it is impacting on the operations function through both new practices but
also, increasingly, in terms of regulation, risk and reputation.
In essence the efficient clearing and settlement operation is managing
risk, not because it is a direct part of the process but more because it is a bi-product. The routine procedures relate to reconciliation
and record keeping. If these are performed efficiently and accurately it will result in accurate records of activity and profit and loss.
The settlement process is a key element in identifying and correcting errors made by dealers and traders. Failure to identify the
error or act promptly will result in potentially serious financial loss, as well as worrying audit and the regulators.
In addition
to these concerns the financial service sector is also undergoing a massive rationalization of the structure of clearing and settlement
and seeking the twin goals of automation and shortening settlement cycles. The challenge for operations managers is considerable: manage
costs, eradicate inefficiencies, create an environment to be competitive, and implement the procedures to meet future changes that will
occur.
In this book the author looks at some of the different roles, the processes and procedures, and the key issues, in order to
help those in operations meet the challenge.
Audience:
Operations staff in banks and other financial institutions who have experience in the finance industry; Individuals who seek a career
move into the operational side of the business, or those who wish to move into a supervisory/management role with the operations function.
