The arrangements for settlements of securities transactions and the potential risks associated with these arrangements have been the subject of considerable prior work of both the Committee on Payment and Settlement Systems (CPSS) and the International Organization of Securities Commissions (IOSCO). This work has consistently emphasised the need for market participants to have a clear understanding of the rights, obligations, and exposures associated with their participation in securities settlement systems.
The present Disclosure Framework for Securities Settlement Systems builds on the earlier work of the CPSS and IOSCO by providing a protocol for the review of a securities settlement system's operation and its allocation of risks. It is intended as a tool for system operators and participants to use in discussing the risks associated with securities settlement arrangements. The contribution of the Disclosure Framework to enhancing the transparency of settlement arrangements will naturally depend on the positive cooperation of system operators in devoting their own resources to its completion. In the view of the CPSS and IOSCO, the cost of these resources will be far outweighed by the risk management benefits.
The Disclosure Framework is structured in the form of a questionnaire intended to be completed by organisations that operate securities settlement systems. Operators are being encouraged to send copies of their responses to the secretariats of the CPSS and IOSCO, who will act as clearing houses to make the information available internationally.
The BIS web site contains the full text of the Disclosure Framework as well as samples of the disclosure framework responses as completed by various system operators. It is important to note that the information contained in these documents is the responsibility of the respective system operator and is not the responsibility of the BIS, the CPSS, IOSCO or their member institutions.
Listed below are securities settlement systems that have completed the Disclosure Framework. Responses to the questionnaire can therefore be obtained directly from all of these systems. A number of system operators have also provided to the BIS or the IOSCO Secretariats an electronic version of their questionnaire response to be added to the BIS and/or the IOSCO web site (some have arranged for their response to be posted on their proprietary web site). The intention is for the BIS and IOSCO web sites to serve as a single access point for the information that has been made available. The responses available on the BIS website appear underlined.
Again, it should be noted that the information contained in these responses was prepared by the operator of each system and has not been reviewed or endorsed by the BIS, the CPSS, or IOSCO. Specific questions on the content of these responses should be directed to the respective system operator. In some cases, a fax number for such inquiries is indicated (we hope to add further fax numbers as they become available).