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"International Arrangements" of "Payment, Clearing and Settlement

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International arrangements CPSS – Red Book – 2012 509 International arrangements Contents List of abbreviations ........................................................................................................... 515 1. CLS Bank International ............................................................................................. 517 1.1 Institutional framework ..................................................................................... 517 1.2 Participation ..................................................................................................... 517 1.3 Types of transactions ....................................................................................... 517 1.4 Operation of the system and settlement procedures ........................................ 518 1.5 Risk management ............................................................................................ 518 1.6 Major ongoing and future projects .................................................................... 519 2. Clearstream International .......................................................................................... 519 2.1 Introduction ...................................................................................................... 519 2.2 Institutional framework ..................................................................................... 520 2.3 Participation ..................................................................................................... 520 2.4 Types of transactions ....................................................................................... 520 Securities settlement ....................................................................................... 520 Securities lending and borrowing ..................................................................... 520 Triparty Collateral Management Service .......................................................... 521 Triparty Repo Service ...................................................................................... 521 New issues services ........................................................................................ 521 2.5 Operation of the system ................................................................................... 521 Real-time and end-of-day processing .............................................................. 521 Internal settlement ........................................................................................... 522 Bridge settlement ............................................................................................. 522 External settlement .......................................................................................... 522 The Creation platform ...................................................................................... 522 Transaction processing environment ............................................................... 523 2.6 Risk management ............................................................................................ 523 Legal risk ......................................................................................................... 523 Settlement risk ................................................................................................. 525 Credit risk ........................................................................................................ 525 Liquidity risk ..................................................................................................... 526 Market risk ....................................................................................................... 526 Operational risk ............................................................................................... 526 Liability of CBL ................................................................................................. 526 2.7 Links to other systems ..................................................................................... 527 2.8 Pricing ............................................................................................................. 527 CPSS – Red Book – 2012 511 International arrangements 3. Euroclear Bank ......................................................................................................... 527 3.1 Introduction ...................................................................................................... 527 3.2 Institutional framework ..................................................................................... 528 Oversight and prudential supervision ............................................................... 528 3.3 Participation ..................................................................................................... 528 3.4 Types of transactions ....................................................................................... 528 Securities settlement ....................................................................................... 528 Securities lending and borrowing ..................................................................... 529 New issues ...................................................................................................... 529 Triparty collateral management services .......................................................... 530 Asset servicing................................................................................................. 530 3.5 Operation of the system ................................................................................... 530 Settlement model ............................................................................................. 530 Settlement windows ......................................................................................... 530 3.6 Risk management ............................................................................................ 531 Legal risk ......................................................................................................... 531 Settlement risk ................................................................................................. 532 Credit risk ........................................................................................................ 532 Liquidity risk ..................................................................................................... 532 Market risk ....................................................................................................... 533 Operational risk................................................................................................ 533 3.7 Links to other systems ..................................................................................... 533 3.8 Pricing ............................................................................................................. 533 3.9 Major ongoing and future projects .................................................................... 534 3.10 The use of the securities infrastructure by the National Bank of Belgium ......... 534 4. American Express Company ..................................................................................... 534 4.1 Institutional framework ..................................................................................... 534 4.2 Participation ..................................................................................................... 535 4.3 Types of services ............................................................................................. 535 4.4 Operation of the system and settlement procedures ........................................ 535 4.4.1 Data transmission ................................................................................... 535 4.4.2 Authorisation........................................................................................... 535 4.4.3 Clearing and settlement procedures ....................................................... 535 4.5 Risk management ............................................................................................ 535 4.6 Major ongoing and future projects .................................................................... 536 5. MasterCard Worldwide ............................................................................................. 536 5.1 Institutional framework ..................................................................................... 536 512 CPSS – Red Book – 2012 International arrangements 5.2 Participation ..................................................................................................... 536 5.3 Types of services ............................................................................................. 536 5.4 Operation of the system and settlement procedures ........................................ 537 5.4.1 Data transmission ................................................................................... 537 5.4.2 Authorisation .......................................................................................... 537 5.4.3 Clearing and settlement procedures ....................................................... 537 5.5 Risk management ............................................................................................ 538 5.6 Major ongoing and future projects .................................................................... 538 6. Visa .......................................................................................................................... 538 6.1 Institutional
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