Risk Management Systems in Clearing and Settlement: Asian and Pacific Equity Markets

Abstract

This paper presents an overview of risk management systems in clearing and settlement. In addition, against the recommendations proposed by the Group of Thirty and revised by the International Securities Services Association, current practices of 13 organized stock exchanges in the Asian and Pacific region are presented. Policy issues related to the coexistence of both underlying equity and financial derivatives markets in the region and the increasing volume of cross-border transactions are also discussed.