Pricing of Settlement Link Services and Mergers of Central Securities Depositories

Tapking, Jens

doi:10.2139/ssrn.954704

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Pricing of Settlement Link Services and Mergers of Central Securities Depositories

ECB Working Paper No. 710

40 Pages Posted: 19 Jan 2007

See all articles by Jens Tapking

Jens Tapking

European Central Bank (ECB)

Date Written: January 2007

Abstract

This paper tries to contribute to the discussion on the role of securities settlement infrastructures for financial integration in Europe. It presents a model that can explain a well-known stylized fact of securities settlement, the surprisingly high fees charged by central securities depositories (CSDs) for settlement through links between CSDs. As the model turns out to provide a robust explanation for this stylized fact, it is then used to analyzes an important policy question, the welfare effects of mergers of CSDs.

Keywords: Securities settlement, link settlement fees, central securities depositories

JEL Classification: G21, G15, L13

Suggested Citation: Suggested Citation

Tapking, Jens, Pricing of Settlement Link Services and Mergers of Central Securities Depositories (January 2007). ECB Working Paper No. 710, Available at SSRN: https://ssrn.com/abstract=954704 or http://dx.doi.org/10.2139/ssrn.954704