Interlinking securities settlement systems : A strategic commitment?
Kauko, Karlo (29.10.2003)
Numero
26/2003Julkaisija
Suomen Pankki
2003
Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:bof-20140807393Tiivistelmä
Central securities depositories (CSDs) have opened mutual links, but most of them are seldom used.Why are idle links established? By allowing a foreign CSD to offer services through the link the domestic CSD invites competition.The domestic CSD can determine the cost efficiency of the rival by charging suitable fees, and prevent it from becoming more competitive than the domestic CSD.By inviting the competitor the domestic CSD can commit itself not to charge monopoly fees for secondary market services.This enables the domestic CSD to charge high fees in the primary market without violating investors participation constraints. Key words: securities settlement systems, central securities depositories, network industries, access pricing JEL classification numbers: G29, L13
Julkaisuhuomautus
Published in Journal of Banking & Finance, Volume 31, Issue 10, October 2007, pp. 2962-2977 and European Central Bank ; Working paper 427.