Equity Clearing and Settlement Models in the UK and Taiwan: Market Stability and Investor Protection Perspectives

Joseph Lee ()
Additional contact information
Joseph Lee: University of Exeter

Chapter Chapter 25 in Legal Thoughts between the East and the West in the Multilevel Legal Order, 2016, pp 423-443 from Springer

Abstract: Abstract This chapter uses comparative law analysis to examine the systems and processes of post-trading infrastructure – clearing and settlement – in the UK and Taiwan. Its purpose is to identify the differences in the operating models, the governance and the regulatory thinking behind them. Taiwan clearly shows its cautious approach to post-trading infrastructure which is evidenced in its vertical silo system and in its direct and transparency holding system. However, Taiwan does not provide clear legal rules dealing with insolvency risk and settlement finality. It is also not clear why Taiwan does not follow the ‘place of the relevant intermediary approach’ (hereinafter ‘PRIMA’). It is argued that Taiwan can learn from the UK’s non-vertical silo model to increase innovation. Taiwan could also adopt the trust and non-transparency indirect holding system to increase investor protection and settlement finality to increase legal certainty.

Keywords: Clearing; Settlement; Securities; CSD; CCP; Cross-border (search for similar items in EconPapers)
Date: 2016
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

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:spr:eclchp:978-981-10-1995-1_25

Ordering information: This item can be ordered from
http://www.springer.com/9789811019951

DOI: 10.1007/978-981-10-1995-1_25

Access Statistics for this chapter

More chapters in Economics, Law, and Institutions in Asia Pacific from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().