Alternatives of Cross-Border Securities Settlement System in East Asia

Hee-Yul Chai () and Yeongseop Rhee ()
Additional contact information
Hee-Yul Chai: Kyonggi University
Yeongseop Rhee: Sookmyung Women's University

East Asian Economic Review, 2005, vol. 9, issue 2, 49-82

Abstract: The establishment of cross-border securities settlement system is a very important element of regional capital market integration. Despite its importance, relatively few arguments, both theoretical and practical, have been advanced on the subject. This paper aims to examine the alternatives of cross-border securities settlement system in East Asia, and analyse the feasibility and the advantages and disadvantages of each alternative. The paper underlines the need to develop a multi-currency DVP securities settlement system. The conceivable alternatives of East Asia's cross-border securities settlement system can be divided into decentralized system and centralized system. It is possible to consider a large array of institutional settings according to the depository/settlement methods. The comparison of the alternatives is based on economic efficiency, feasibility and institutional location of settlement system. In view of these criteria, it is argued that a 'big-bang' approach toward imperfectly cenralized system is the most desirable alternative.

Keywords: Cross-border Securities Settlement; Multi-currency DVP Securities Settlement; Capital Market Integration In East Asia; Decentralized System; Centralized System (search for similar items in EconPapers)
JEL-codes: E44 F15 F42 F59 G15 (search for similar items in EconPapers)
Date: 2005
References: Add references at CitEc
Citations:

Downloads: (external link)
http://dx.doi.org/10.11644/KIEP.JEAI.2005.9.2.144 Full text (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ris:eaerev:0173

Access Statistics for this article

East Asian Economic Review is currently edited by JE Lee

More articles in East Asian Economic Review from Korea Institute for International Economic Policy [30147] 3rd Floor Building C Sejong National Research Complex 370 Sicheong-daero Sejong-si, Korea. Contact information at EDIRC.
Bibliographic data for series maintained by JE Lee ().