Clearing and Settlement

See below for a list of independently written IBS Journal news and feature articles and IBS Intelligence Research vendor profiles, case studies and market analysis related to Clearing and Settlement in order of publication date.

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The clearing and settlement functions are two activities that relate to the finalisation of a transaction or trade. Traditionally these activities were in the domain of the back office but recent initiatives, including MiFID, have placed increased visibility on the clearing and settlement functions.

Essentially, clearing refers to the movement of the item to its intended destination – for example, delivering a cheque to the drawer’s bank, or delivering securities to the designated custodian. The clearing is often done through recognised clearing networks that specialise in that form of instrument – for example, a foreign exchange transaction could be cleared through FXAll or similar, or a European security trade could clear through Euroclear in Brussels, or a cheque through a local or national clearing house.

Settlement normally refers to the exchange of value associated with a transaction i.e. transfer of cash.

There are two types of settlement – gross and net. In gross settlement, each item clears as an amount in its own right, quite often in real-time. In net-settlement, items are aggregated throughout a defined period (possibly four hours or the entire working day and the net differences between the amounts owed and due between organisations are exchanged. An example of a net settlement system is that used for settling cheques exchanged between the UK clearing banks. In this system, cheques are exchanged between those banks which received the cheques into their customers’ accounts (receiving bank) and those whose customers actually wrote the cheques (drawing bank). The net difference is paid (or received) through an exchange of funds in their Bank of England accounts that represents the net difference between the cheques received and given between them.

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Article: Euroclear and DTCC to offer joint collateral services

16 May 2013

Euroclear and Depository Trust and Clearing Corporation (DTCC) have announced they will launch new collateral processing services based on the former's Collateral Highway offering and the latter's equivalent, Margin Transit Utility.

Article: Editor's Note – May 2013

07 May 2013

The number of new players in the payments sector seems to multiply by the week. They are queuing up to try to dismantle long-standing value-chains. Just about all of the newcomers are focused on the C2C or B2C spaces, whether domestic or cross-border....

Article: Euroclear gains recruits for Collateral Highway

29 April 2013

Euroclear's Collateral Highway has similar aims to Clearstream's Global Liquidity Hub and is gaining a similar set of takers, with Standard Chartered the latest to sign.

Article: Getco adds EuroCCP to its list of clearers

26 April 2013

US-based market maker, Getco, has added EuroCCP to the list of interoperable central counterparty (CCP) clearing partners for its trading platform, GETMatched Europe.

Article: BNP Paribas adopts new Swift collateral flow messages

25 April 2013

BNP Paribas Securities Services is to integrate Swift's new collateral flow messages into its Margin Protect service to try to remove fax and email-based processes ahead of the expected leap in volumes as a result of new regulations.

Article: Standard Chartered partners with Clearstream for collateral management

24 April 2013

As BNP Paribas nears go-live, Standard Chartered has signed as the third institution to seek to provide a global collateral pool for clients by working with Clearstream's Global Liquidity Hub service.

Article: First phase of UAE DDS initiative set for June go-live

23 April 2013

The Direct Debit Scheme (DDS), a national initiative in the UAE for electronically processed payments, is set to launch on 15th June 2013. Initially, the DDS will cover loan and mortgage repayments, with credit cards and utility payments expected...

Article: DGCX completes IT overhaul

15 April 2013

Dubai Gold and Commodities Exchange (DGCX) is getting to grips with its new trading platform from Swedish provider, Cinnober. The system, dubbed EOS Trader, provides DGCX's brokers with a new front-end option, as well as new clearing and matching...

Article: SIA underpins EBA Clearing’s MyBank initiative

09 April 2013

European Banking Association Clearing (EBA) has launched its new MyBank e-payments channel. The system is underpinned by technology from Italy-based payments provider, SIA, and 28 institutions have joined the initiative in the first phase. Two...

Article: EMCF and EuroCCP join forces to create new pan-European clearing house

27 March 2013

Pan-European cash equities clearing giants EMCF (owned by ABN Amro and Nasdaq OMX) and EuroCCP (owned by the Depository Trust & Clearing Corporation) have announced an agreement to join to create a single, more robust central counterparty for...

Article: London Stock Exchange outlines plans for Gatelab

12 March 2013

London Stock Exchange (LSE) has outlined its plans for the Italian trading solutions provider, Gatelab, which was acquired at the end of last year. Antoine Shagoury, COO at LSE, says that the company will be developed through a joint R&D process,...

Article: Bolsa de Valores de Lima signs for MillenniumIT trading platforms

20 February 2013

Peru-based Bolsa de Valores de Lima (BVL) is preparing to kick off its implementation of the Millennium Exchange and MillenniumSOR platforms owned by the London Stock Exchange (LSE). As well as this, BVL is close to finalising an agreement for a...

Article: Hong Kong Exchanges and Clearing kicks off MillenniumSOR implementation

19 December 2012

Hong Kong Exchanges and Clearing (HKEx) is implementing MillenniumSOR from Sri Lanka-based technology solutions provider, MillenniumIT (owned by the London Stock Exchange), to drive its new Orion Central Gateway. The system is scheduled to go live in...

Article: Analysis: Target2-Securities – Where there is a (political) will, there is a way

03 December 2012

The likely make-up of the post-trade market with the arrival of Target2-Securities (T2S) is starting to take shape. Far from the predicted reduction in the number of Central Securities Depositories (CSDs), it looks as though there will be an...

Article: ECB revision to migration deadlines pushes back arrival of T2S

22 November 2012

Already delayed, Target2-Securities (T2S) has effectively been pushed back further as a result of a revision to the migration waves for Central Securities Depositories (CSDs). Few CSDs wanted to go in the first two of the three scheduled waves and,...

Article: South African CSD, Strate, extends use of TCS Bancs Market Infrastructure

19 November 2012

TCS Financial Solutions is about to kick off the implementation of Bancs Market Infrastructure at South Africa-based central securities depository (CSD), Strate, for fixed income operations. Meanwhile, upgrade work is underway at other CSDs:...

Article: Analysis: Fund management – Fax or fiction

05 November 2012

Long beset by manual processes, the funds sector has taken a number of steps forward in the last few years. Under pressure, there has been a new focus on cost efficiency and risk reduction. Nevertheless, there is still some way to go before all...

Article: Belgian banks near go-live with new CSM

01 November 2012

France-based payments processor, STET, has made its first step outside the domestic market with the deployment of a new CSM for Belgian banks, underpinned by STET's Java and Unix-based platform, Core. It is now bidding for a similar project in...

Article: Backchat – November 2012

01 November 2012

The latest gossip from around the industry.

Article: Swift BPO case study: Paperless world – myth or reality?

01 October 2012

Swift has been working for some time to create a new payment instrument that promises to finally drive out much of the paper and inefficiencies around trade. With ratification by the ICC on the way, can the Bank Payment Obligation (BPO) live up to...

Article: Fundtech to deploy Global PayPlus at six banks for Singapore's Immediate Payments project

18 September 2012

Fundtech, US-based payments system supplier, is implementing its payment processing platform with six of Singapore's major financial institutions. The venture is assisted by BCSIS, local partner, and Vocalink, Fundtech's partner in the UK Faster...

Article: Invapay to go live with Earthport's payments platform

13 September 2012

Invapay, specialist in procurement and e-payment solutions, will unveil a new platform, provided by Earthport, in two weeks. The new software will support international corporate payments.

Article: On the move – September 2012

03 September 2012

A round-up of recent appointments and departures within the industry. Departures at Misys, Temenos and Third Financial; and new hires at Fiserv, Lombard Risk and Calypso, among others.

Article: DTCC and Swift pioneer first step towards LEI

24 August 2012

A global standard for transaction reporting, the Legal Entity Identifier (LEI), has moved a step closer with the DTCC and Swift launching a web portal for an interim identifier under the auspices of the US Commodity Futures Trading Commission...

Article: Completed Proof of Concept tests provide boost for T2S

24 August 2012

Swift and SIA/Colt have concluded Proof of Concept phases for Target2Securities connectivity as the long-awaited and much delayed European Central Bank-led project starts to move into view.   

Article: Interview with Javier Tordable, Cinnober

14 August 2012

Having recently signed major deals with emerging markets, Cinnober is gathering speed to expand its targets. IBS talks to its new CEO Javier Tordable. 

Article: ProgressSoft – PS-ECC Suite, PS-SIG Suite, PS-eTrade, PS-ACH, PS-MPay

25 July 2012

Contents: Overview / Corporate Overview / Product Suite / Partnerships / Uptake and customer experiences / User List. 

Article: Montran Corporation – Montran Suite

18 July 2012

Contents: Overview / History / Product Suite / Uptake and Customer Experiences / User List

Article: Euroclear's eurozone CSDs to sign T2S Framework Agreement

14 June 2012

The migration date is still to be determined but the four Euroclear central securities depositories inside the eurozone have agreed to sign the framework agreement to implement Target 2 Securities, and outsource their settlement functions to a...

Article: SIX to build and run SEPA switch for Belgian card processor

01 June 2012

Belgian debit card scheme operator, Bancontact/MisterCash, is working with SIX Payment Services to become a SEPA-compliant card payment scheme. Go-live is expected mid-2013.

Article: Cinnober and Calypso in battle for LME Clear contract

23 May 2012

London Metal Exchange (LME) has shortlisted Cinnober and Calypso as potential technology suppliers for LME's new clearing house project, LME Clear. A five-week design study with each vendor is now under way.

Article: The Nigerian Stock Exchange signs with Nasdaq OMX

05 April 2012

The Nigerian Stock Exchange is planning a major transformation with the selection of Nasdaq OMX's X-Stream platform. It is the first in sub-Saharan Africa to go this route and might use it to host other exchanges.

Article: ANZ ponders future of GBST Syn project

03 April 2012

The Syn back office settlement platform roll-out at ANZ is believed to be on the rocks. According to industry sources, Wall Street Systems is a possible replacement.

Article: Who's Bought What? – March 2012

01 March 2012

A round-up of recent orders in the financial technology sector worldwide. Fundtech, Infosys, Nasdaq OMX and Autosoft Dynamics are among the vendors to sign new deals. Suncorp, National Bank for Agriculture and Rural Development, Nib...

Article: Fundtech to supply ACH platform to Corporate One Federal Credit Union

17 February 2012

Fundtech has landed a deal to underpin automated clearing house (ACH) services at Corporate One Federal Credit Union with its PayPlus ACH and CashPlus payment solutions. Corporate One, which provides services to other US credit unions, has 800...

Article: Euroclear and Markit sign MoU to create post-trade facility for syndicated loans

22 December 2011

Settlement and securities services provider, Euroclear Bank, and financial services and information business, Markit, have signed a memorandum of understanding (MoU) to jointly create an operational infrastructure to support the use of loans as...

Article: End of Year Review 2011

19 December 2011

A round-up of some of the key events in the industry over the past year. Read more >>

Article: Nasdaq OMX launches Europe's first multi-asset risk management platform

15 December 2011

A new multi-asset risk management platform, Genium Risk, has gone live at Nasdaq OMX Clearing. The platform covers equities and fixed incomes, with commodities to follow next year.

Article: Who's Bought What? – December 2011 / January 2012

05 December 2011

A round-up of recent orders in the financial technology sector worldwide. TCS, Forbis and others have gained new deals. Just Bank, Erste Bank Group and Royal Bank of Scotland are among the financial institutions that have acquired new software.

Article: Calypso underpins new registration service of BM&FBovespa

25 November 2011

BM&FBovespa, the largest stock exchange in Latin America, has recently received approval from Brazil's regulators to launch a new registration and clearing service for OTC derivatives. Calypso is providing the technology for it.

Article: Bahrain completes cheque clearing project with ProgressSoft; looks for ACH supplier

21 November 2011

ProgressSoft, the Jordan-based payment system vendor, has completed a project to automate cheque clearing for the Central Bank of Bahrain. The bank is now looking for an ACH offering. 

Article: KBC breakaway, Torstone Tech, sets sights on brokerage market

08 November 2011

Torstone Technology, a newly founded company, intends to market its Inferno securities and derivatives processing solution internationally. It already has a presence in New York, Hong Kong and London. 

Article: SIA Expo 2011: The tell-tale heart

01 November 2011

The SIA Expo 2011, which took place in Milan in mid-October, billed itself as 'the beating heart of the European payments evolution'. It attracted over 600 bankers, who had come to hear from a cross-section of speakers from industry bodies and...

Article: DTCC partners with Clearstream, turns attention to principal and interest payments aggregation for lending

16 September 2011

DTCC and Clearstream are to partner for bilateral and syndicated lending. The former's Loan/Serv platform will be integrated with Clearstream's collateral management platform for bilateral lending; Clearstream will market DTCC's syndicated lending...

Article: ASX gears up for competition in Australia's trading market; searches for new MD and CEO

20 July 2011

Australian Securities Exchange (ASX) is preparing for competition, with Chi-X set to be the first to break ASX's monopoly in share trading later this year. The exchange is also searching for a new MD and CEO to succeed Robert Elstone who is...

Article: LCH.Clearnet adopts new clearing platform from Murex; extends to US

19 July 2011

Following the recent go-live of a new OTC interest rate swaps clearing platform, LCH.Clearnet is extending its reach to the US. The work is being carried out in partnership with the clearing house's platform supplier, Murex.

Article: Search is on for Target2 Securities connectivity services providers

18 July 2011

Banca d'Italia has issued a tender to award two seven-year licences for Target2 Securities (T2S) connectivity services. The search is being carried out on behalf of the Eurozone central banks. 

Article: Who's Bought What? – July / August 2011

06 July 2011

A round-up of recent orders in the financial technology sector worldwide. Polaris, 3i Infotech, Callataÿ & Wouters, Capital Banking Solutions, TCS and others have gained new deals. Housing Bank for Trade Finance, Reserve Bank of India, Unicredit ...

Article: Analysis: OTC derivatives – Taming of the shrewd

29 June 2011

The OTC derivatives market is worth around $615 trillion globally. Some see it as bad news waiting to happen whilst others view it as an essential part of the framework of managing risk. Regulation is bound to cause a stir.

Article: St Gabriel's implements Temenos T24 for electronic fund transfers

15 June 2011

St Gabriel's Credit Union has chosen to implement electronic fund transfer (EFT) functionality based on Temenos' T24 core banking system. It is working with Temenos' local partner, CU Plus.