"The real business in securities is clearing and settlement, " says Caldwell of Caldwell Financial.
He also wants information related to the bank's market-making activities and its clearing and settlement procedures.
Because economies of scale are so important, clearing and settlement have tended to be quasi-monopolies.
ECONOMIST: Post-trade concerns could hamper a pan-European solution
To cut European trading costs to American levels, European clearing and settlement institutions must merge.
With his plan to take over Montetitoli, Mr Capuano wants to get clearing and settlement under the exchange's roof.
They would much rather see mergers of clearing and settlement businesses in different jurisdictions, which could bring down costs.
This is a big failing, because clearing and settlement account for 80% of the cost of European cross-border share trading.
The issue of clearing and settlement was a crucial factor in the government's 2011 decision to reject Singapore Exchange Ltd.
LSE, thinks the European Commission in Brussels should go further and impose a single European clearing and settlement system like America's.
The joint private-sector forum introduced today will specifically be looking into clearing and settlement systems, market liquidity and the development of new yuan-denominated products.
Instead of competing with the various mWallets with our own mobile wallet, P2P provides the clearing and settlement BETWEEN all the various proprietary mWallets.
Visa earns revenues by charging fees for its transaction processing service, which involves routing payment information to facilitate the authorization, clearing and settlement of transactions.
FORBES: When Visa Hits $92, Don't Say We Didn't Tell You It Was Going There
More realistically, market forces will drive clearing and settlement houses to join forces, because it is more cost-efficient when buyer, seller and security are linked.
Europe's banks may have to deal with up to 31 different national and cross-border clearing and settlement systems when trading in European shares and bonds.
The share-trading business involves three different jobs: trading, clearing and settlement.
The attainment of these objectives might be facilitated by the introduction of a central counterparty but may also be achievable under the current framework for clearing and settlement.
Anyway, most of them fret more about improving clearing and settlement in Europe, which is much more expensive than in America and so offers greater scope for savings.
In London, clearing and settlement have been split from trading.
An example is virt-x, a small electronic exchange for European blue-chip shares which offers clearing and settlement alternatives: nearly all the liquidity has migrated to just one of them.
ECONOMIST: Post-trade concerns could hamper a pan-European solution
This isn't the first time a company has locked horns with the DTCC, the brokerage-owned private company that handles the bulk of the clearing and settlement in U.S. securities transactions.
Clearing and settlement systems, by contrast, are boring businesses.
In other words, he is leaning towards the German model of a vertical silo in which a stock exchange oversees not just the trading of securities, but their clearing and settlement as well.
Although neither European exchange has abandoned its interest altogether, both are sidelined for the moment, pondering the British competition authorities' requirement that they reduce their stakes in clearing and settlement operations before bidding.
Because clearing and settlement are complex activities and their interplay with trading is not well understood, there is plenty of scope for interested parties to lobby furiously with arguments as bamboozling as three-dimensional chess.
ECONOMIST: Stock-exchange mergers: Three-dimensional chess | The
These efforts include gaining commitments from private-sector participants to automate and standardize the clearing and settlement process, encouraging improved netting and cash settlement arrangements, and supporting the development of a central counterparty for credit default swaps.
The European Central Bank, which ought to see the big picture, is in favour of a clearing and settlement system, or network of systems, within the euro area, but is wary of letting a new monopoly develop.
ECONOMIST: Stock-exchange mergers: Three-dimensional chess | The
For my purposes today, I want to construe "financial infrastructure" very broadly, to include not only the "hardware" components of that infrastructure--the physical systems on which market participants rely for the quick and accurate execution, clearing, and settlement of transactions--but also the associated "software, " including the statutory, regulatory, and contractual frameworks and the business practices that govern the actions and obligations of market participants on both sides of each transaction.
In recent months, hedge fund critics have raised the issues of aggressive short-selling, hedge fund collusion with research analysts to manipulate a stock to their benefit, and short-sellers who skirt rules on stock settlement and clearing to make profits.
应用推荐