Clearing, Settlement and Custody

This primer for those in finance and business explains the processes involved in the conclusion of financial transactions, also known as clearing and settlement processes. The book begins with a chapter on the structure of clearing and settlement and the objectives of clearing houses. Subsequent chapters cover the role of the clearing house, bond settlement, equity clearing and settlement, clearing and settlement of derivatives, custody services, and securities lending. One chapter is devoted to settlement of portfolio transactions and subscription/redemption of shares and units in investment funds. The final chapter considers risk and regulation. The book includes a 50-page glossary and lists of useful websites. This second edition contains four new chapters reflecting global conditions in the world of finance, as well as changes in the regulatory environment that began in response to the 2008 financial market crash. There are also new case studies. Annotation ©2014 Book News, Inc., Portland, OR (booknews.com)