Clearing, Settlement and Custody - 2nd Edition - ISBN: 9780080983332, 9780080983455

Clearing, Settlement and Custody

2nd Edition

Authors: David Loader
eBook ISBN: 9780080983455
Paperback ISBN: 9780080983332
Imprint: Butterworth-Heinemann
Published Date: 1st September 2013
Page Count: 240
Sales tax will be calculated at check-out Price includes VAT/GST
Price includes VAT/GST
× DRM-Free

Easy - Download and start reading immediately. There’s no activation process to access eBooks; all eBooks are fully searchable, and enabled for copying, pasting, and printing.

Flexible - Read on multiple operating systems and devices. Easily read eBooks on smart phones, computers, or any eBook readers, including Kindle.

Open - Buy once, receive and download all available eBook formats, including PDF, EPUB, and Mobi (for Kindle).

Institutional Access

Secure Checkout

Personal information is secured with SSL technology.

Free Shipping

Free global shipping
No minimum order.


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.

Key Features

  • Supplements theoretical insights about risk with empirical data from current cases
  • Provides the first algorithmic risk management technique that spans multiple asset classes
  • End-of-chapter questions reinforce primary and secondary points


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.  

Table of Contents


Chapter 1. The structure of clearing and settlement


The clearing house

Changes in clearing

Development of the clearing structures

Objectives of clearing houses


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


The role of the CCP

The role of securities depositories

The role of trade repositories


Chapter 3. Bond settlement



International bonds

Domestic bonds

Fixed-rate bonds

Floating-rate notes

Zero coupon bonds


Lead manager

Co-lead manager


Trade confirmation

Settlement instruction

International bonds, global bonds and convertible bonds

Government bonds and domestic bonds


Chapter 4. Equity clearing and settlement



Issuing and trading equities


Corporate actions

Record date

Pay date


Repayment of capital

Stock benefits


Scrip dividends

Stock situations


Chapter 5. Clearing and settlement of derivatives



Exchange traded futures and options

OTC derivatives

Further reading

Summary: Useful reference websites

Chapter 6. Custody services


Instruction from client to global custodian

Reporting requirements

Pooled nominee system (omnibus)

Corporate actions

Stock situations

Take-overs, mergers and de-mergers


Warrant exercise

Pari passu lines of a security

Redemptions and maturity

Share suspension and liquidations



No. of pages:
© Butterworth-Heinemann 2014
eBook ISBN:
Paperback ISBN:

About the Author

David Loader

David Loader is co-founder of DSC Portfolios Ltd., which specializes in global training and consultancy services for the financial industry. David has worked in the debt, equity, and derivatives markets, and his expertise in back-office dynamics is unparalleled. He has written widely on operations management, derivatives, fund administration, and operational risk.

Affiliations and Expertise

Director of DSC Portfolio Ltd. and Loader Associates Ltd.


"This primer for those in finance and business explains the processes involved in the conclusion of financial transactions, also known as clearing and settlement processes…This second edition contains four new chapters reflecting global conditions in the world of finance, as well as changes in the regulatory environment that began in response to the 2008 financial market crash. There are also new case studies.", January 2014
"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

Ratings and Reviews