Competition in the clearing and settlement industry

Shaofang Li and Matej Marinč

Journal of International Financial Markets, Institutions and Money, 2016, vol. 40, issue C, 134-162

Abstract: This article empirically analyzes the competitive landscape within the clearing and settlement industry. Using panel data for 46 clearing and settlement institutions from 23 countries, we confirm that competition between clearing and settlement institutions is limited. We show that competition increases with institutional size, with technological development, and after horizontal mergers, but not after vertical mergers. In addition, we find that competition in clearing and settlement is higher in the US than in Europe and was higher during the global financial crisis compared to normal times.

Keywords: Clearing and settlement services; Competitive condition; Panzar–Rosse model; Global financial crisis (search for similar items in EconPapers)
Date: 2016
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Citations: View citations in EconPapers (4)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:intfin:v:40:y:2016:i:c:p:134-162

DOI: 10.1016/j.intfin.2015.09.004

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