Theoretical and Applied Economics
No. 8 / 2008 (525)
Gross or Net Settlement? What Type of Securities Settlement System Works Best?
Academia de Studii Economice, Bucuresti
Florian Neagu
Romulus Mircea
Banca Nationala a Romaniei
Abstract. The securities markets are going through material structural changes. Some best practices have been identified in order to deliver safety and efficient securities settlement systems. The paper investigates when gross settlement works better than the net solution. We highlight that, due to the new trends in securities markets characteristics, the safetyness criteria might deliver indifference between using gross or net settlement. The efficiency criterion is the one that makes the difference. We build a model and develop some scenarios in order to assess what type of settlement (gross or net) works best.
Contents
Finances, in the Light of Utility and Equity Criteria
Tax Politcy and Social Output: The UE Case
Effects of International Financial Turbulences Extension on the Romanian Economy. Prevention Solutions
Representing the Local Interests in Governmental Policy Making. The Romanian Experiment
“Lamfalussy Architecture” – A Model for Consolidating the Financial Markets’ Supervision
Gross or Net Settlement? What Type of Securities Settlement System Works Best?