Luxembourg: Financial Sector Assessment Program: Detailed Assessment of Observance-Assessment of Observance of the CPSS-IOSCO Principles for Financial Market Infrastructures: Clearstream Banking Luxembourg

International Monetary Fund

No 2017/260, IMF Staff Country Reports from International Monetary Fund

Abstract: This report assesses the risk management practices of Clearstream Banking Luxembourg (CBL) based on the Committee on Payment and Settlement Systems–International Organization of Securities Commissions (CPSS-IOSCO) Principles for Financial Market Infrastructures. The findings reveal that a range of principles are in broad observance. A key priority is to reduce CBL dependence on commercial banks in its daily operations. There is significant dependence on a limited number of depository and cash correspondent banks, in particular for the US and UK markets. This dependence could be actively mitigated through an increase in the number of contracted banks or, where possible, the establishment of direct links with local central securities depositories and central banks.

Keywords: ISCR; CR; risk management; CBL securities settlement system rule; letter of credit; liquidity provider; credit risk; risk management function; due diligence; CBL participant; CBL securities settlement system; CBL finality rule; securities settlement system rule; default management procedure; finality rule; Securities; Credit; Operational risk; Currencies; Global (search for similar items in EconPapers)
Pages: 161
Date: 2017-08-28
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