Competition in the Clearing and Settlement Industry
53 Pages Posted: 3 Aug 2014 Last revised: 9 May 2015
Date Written: April 16, 2015
This article empirically analyzes the competitive landscape within the clearing and settlement industry. Using the panel data of 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 the institutional size, with technological development and after horizontal mergers but not after vertical mergers. Additionally, we find that competition in clearing and settlement is higher in the U.S. than in Europe and higher during the global financial crisis compared to normal times.
Keywords: Clearing and Settlement Services; Competitive Condition; Panzar-Rosse Model; Global Financial Crisis
JEL Classification: G15, G21
Suggested Citation: Suggested Citation