Papers by Simonetta Rosati
Occasional paper series, 2007
INTRODUCTION 5 1 THE DEVELOPMENT OF THE CUSTODY INDUSTRY 6 1.1 The origins of custody 6 1.1.1 Cus... more INTRODUCTION 5 1 THE DEVELOPMENT OF THE CUSTODY INDUSTRY 6 1.1 The origins of custody 6 1.1.1 Custodian banks 6 1.1.2 Introduction of central securities depositories 6 1.1.3 International CSDs 9 1.2 Transformation of the custody industry 10 1.2.1 Custody in the electronic age 10 1.2.2 Cross-border custody services 12 2 THE SUPPLY OF CUSTODY SERVICES 18 2.1 Multi-tiered intermediation 18 2.2 Market size 18 2.3 Market structure 20 2.3.1 Trends among custodians 20 2.3.2 Competition from CSDs 21 2.3.3 The European environment 22 3 THE DEMAND FOR CUSTODY SERVICES 25 3.1 Investors 25 3.2 Intermediaries to investors 26 4 RISKS INVOLVED IN CUSTODY 29 4.1 Risks incurred by custodians 29 4.1.1 Operational risks 29 4.1.2 Credit risks 30 4.1.3 Legal risks 30 4.2 Risks incurred by custody clients 32 4.2.1 Operational risks 32 4.2.2 Financial risks 32 4.2.3 Legal risks 33 4.2.4 Risks arising in internalised settlement 34 4.3 Systemic risk 34 4.3.1 Operational failure of a custodian 35 4.3.2 Financial failure of a custodian 36 5 CHALLENGES FOR THE CUSTODY INDUSTRY 37 5.1 Diversity and increasing complexity of assets 37 5.2 Competition from CSDs in banking services 38 5.3 European challenges (MiFID, Code of Conduct and TARGET2-Securities) 39 6 CONCLUSIONS 41 ANNEXES Annex 1 Custodian banks in the EU 44 Annex 2 Custodian banks in non-EU Europe 48 Annex 3 Custodian banks in Asia Pacific 50 Annex 4 Custodian banks in Africa and the Middle East 52 Annex 5 Custodian banks in the Americas 54 REFERENCES 56
RePEc: Research Papers in Economics, Feb 1, 2005
In 2005 all ECB publications will feature a motif taken from the €50 banknote.
RePEc: Research Papers in Economics, Aug 1, 2007
INTRODUCTION 5 1 THE DEVELOPMENT OF THE CUSTODY INDUSTRY 6 1.1 The origins of custody 6 1.1.1 Cus... more INTRODUCTION 5 1 THE DEVELOPMENT OF THE CUSTODY INDUSTRY 6 1.1 The origins of custody 6 1.1.1 Custodian banks 6 1.1.2 Introduction of central securities depositories 6 1.1.3 International CSDs 9 1.2 Transformation of the custody industry 10 1.2.1 Custody in the electronic age 10 1.2.2 Cross-border custody services 12 2 THE SUPPLY OF CUSTODY SERVICES 18 2.1 Multi-tiered intermediation 18 2.2 Market size 18 2.3 Market structure 20 2.3.1 Trends among custodians 20 2.3.2 Competition from CSDs 21 2.3.3 The European environment 22 3 THE DEMAND FOR CUSTODY SERVICES 25 3.1 Investors 25 3.2 Intermediaries to investors 26 4 RISKS INVOLVED IN CUSTODY 29 4.1 Risks incurred by custodians 29 4.1.1 Operational risks 29 4.1.2 Credit risks 30 4.1.3 Legal risks 30 4.2 Risks incurred by custody clients 32 4.2.1 Operational risks 32 4.2.2 Financial risks 32 4.2.3 Legal risks 33 4.2.4 Risks arising in internalised settlement 34 4.3 Systemic risk 34 4.3.1 Operational failure of a custodian 35 4.3.2 Financial failure of a custodian 36 5 CHALLENGES FOR THE CUSTODY INDUSTRY 37 5.1 Diversity and increasing complexity of assets 37 5.2 Competition from CSDs in banking services 38 5.3 European challenges (MiFID, Code of Conduct and TARGET2-Securities) 39 6 CONCLUSIONS 41 ANNEXES Annex 1 Custodian banks in the EU 44 Annex 2 Custodian banks in non-EU Europe 48 Annex 3 Custodian banks in Asia Pacific 50 Annex 4 Custodian banks in Africa and the Middle East 52 Annex 5 Custodian banks in the Americas 54 REFERENCES 56
Social Science Research Network, Dec 1, 2019
This paper should not be reported as representing the views of the European Central Bank (ECB). T... more This paper should not be reported as representing the views of the European Central Bank (ECB). The views expressed are those of the authors and do not necessarily reflect those of the ECB.
Occasional paper series, 2012
In 2012 all ECB publications feature a motif taken from the €50 banknote.
Social Science Research Network, 2008
This paper documents the importance of nonbanks in retail payments in the United States and in 15... more This paper documents the importance of nonbanks in retail payments in the United States and in 15 European countries and analyses the implications of the importance and multiple roles played by nonbanks on retail payment risks. Nonbanks play multiple roles along the entire payment processing chain. They are prominent in the United States and their presence is high and growing in Europe as well, although there are differences among the various countries and payments classes. Nonbanks' presence has shifted the locus of risks in retail payments towards greater relevance of operational and fraud risk. The paper reviews the main safeguards in place, and concludes that there may be a need to reconsider some of them in view of the growing role of nonbanks and of the global reach of risks in the electronic era.
The U.S. retail payments system is in the midst of a transformation. The shift from paper to elec... more The U.S. retail payments system is in the midst of a transformation. The shift from paper to electronics, the emergence of new instruments and payments channels, the rise in nonbank participation, the change in risk profiles—all are elements of this new landscape. The Federal Reserve takes as one of its mandates fostering a payments system that is safe, efficient, and accessible. How does the Federal Reserve fulfill this mandate in this new environment? Since its beginning, the Federal Reserve has played a crucial role in the U.S. retail payments system. From time to time, that role has been reevaluated, for example, in the 1980s with the publication of the White Paper and in the 1990s with the report of the Rivlin Committee. 1 The current environment suggests the time may be right for another examination. Other central banks are facing similar issues. The Bank for International Settlements (BIS), for example, has published two important studies in recent years analyzing the role of...
This paper documents the importance of nonbanks in retail payments in the United States and in 15... more This paper documents the importance of nonbanks in retail payments in the United States and in 15 European countries and analyses the implications of the importance and multiple roles played by nonbanks on retail payment risks. Nonbanks play multiple roles along the entire payment processing chain. They are prominent in the United States and their presence is high and growing in Europe as well, although there are differences among the various countries and payments classes. Nonbanks ’ presence has shifted the locus of risks in retail payments towards greater relevance of operational and fraud risk. The paper reviews the main safeguards in place, and concludes that there may be a need to reconsider some of them in view of the growing role of nonbanks and of the global reach of risks in the electronic era.
publications feature a motif taken from the €50 banknote. by Klára Bakk-Simon, Stefano Borgioli, ... more publications feature a motif taken from the €50 banknote. by Klára Bakk-Simon, Stefano Borgioli, Celestino Girón,
In 2005 all ECB publications will feature a motif taken from the €50 banknote. This paper can be ... more In 2005 all ECB publications will feature a motif taken from the €50 banknote. This paper can be downloaded without charge from
The European Central Bank and the Bank of England would like to take this opportunity to thank al... more The European Central Bank and the Bank of England would like to take this opportunity to thank all those who participated in the conference on Payments and monetary and financial stability in Frankfurt on 12-13 November 2007. In particular, we would like to acknowledge the valuable contributions of all those who appeared in the programme as presenters, discussants, session chairs and panellists. Behind the scenes, a number of people contributed to both the organisation of the conference and the preparation of these conference proceedings. Many thanks to
Handbook of Short Selling, 2012
ABSTRACT Disruptions that short selling, and naked short selling in particular, can bring to the ... more ABSTRACT Disruptions that short selling, and naked short selling in particular, can bring to the settlement process in case it results in settlement fails is one important concern to the market and market authorities addressed by short selling regulation. This chapter ...
SSRN Electronic Journal, 2008
This paper documents the importance of nonbanks in retail payments in the United States and in 15... more This paper documents the importance of nonbanks in retail payments in the United States and in 15 European countries and analyses the implications of the importance and multiple roles played by nonbanks on retail payment risks. Nonbanks play multiple roles along the entire payment processing chain. They are prominent in the United States and their presence is high and growing in Europe as well, although there are differences among the various countries and payments classes. Nonbanks' presence has shifted the locus of risks in retail payments towards greater relevance of operational and fraud risk. The paper reviews the main safeguards in place, and concludes that there may be a need to reconsider some of them in view of the growing role of nonbanks and of the global reach of risks in the electronic era.
Journal of Banking & Finance, 2006
In 2005 all ECB publications will feature a motif taken from the €50 banknote.
Social Science Research Network, Aug 1, 2007
INTRODUCTION 5 1 THE DEVELOPMENT OF THE CUSTODY INDUSTRY 6 1.1 The origins of custody 6 1.1.1 Cus... more INTRODUCTION 5 1 THE DEVELOPMENT OF THE CUSTODY INDUSTRY 6 1.1 The origins of custody 6 1.1.1 Custodian banks 6 1.1.2 Introduction of central securities depositories 6 1.1.3 International CSDs 9 1.2 Transformation of the custody industry 10 1.2.1 Custody in the electronic age 10 1.2.2 Cross-border custody services 12 2 THE SUPPLY OF CUSTODY SERVICES 18 2.1 Multi-tiered intermediation 18 2.2 Market size 18 2.3 Market structure 20 2.3.1 Trends among custodians 20 2.3.2 Competition from CSDs 21 2.3.3 The European environment 22 3 THE DEMAND FOR CUSTODY SERVICES 25 3.1 Investors 25 3.2 Intermediaries to investors 26 4 RISKS INVOLVED IN CUSTODY 29 4.1 Risks incurred by custodians 29 4.1.1 Operational risks 29 4.1.2 Credit risks 30 4.1.3 Legal risks 30 4.2 Risks incurred by custody clients 32 4.2.1 Operational risks 32 4.2.2 Financial risks 32 4.2.3 Legal risks 33 4.2.4 Risks arising in internalised settlement 34 4.3 Systemic risk 34 4.3.1 Operational failure of a custodian 35 4.3.2 Financial failure of a custodian 36 5 CHALLENGES FOR THE CUSTODY INDUSTRY 37 5.1 Diversity and increasing complexity of assets 37 5.2 Competition from CSDs in banking services 38 5.3 European challenges (MiFID, Code of Conduct and TARGET2-Securities) 39 6 CONCLUSIONS 41 ANNEXES Annex 1 Custodian banks in the EU 44 Annex 2 Custodian banks in non-EU Europe 48 Annex 3 Custodian banks in Asia Pacific 50 Annex 4 Custodian banks in Africa and the Middle East 52 Annex 5 Custodian banks in the Americas 54 REFERENCES 56
In 2007 all ECB publications feature a motif taken from the €20 banknote. This paper can be downl... more In 2007 all ECB publications feature a motif taken from the €20 banknote. This paper can be downloaded without charge from
This paper documents the importance of nonbanks in retail payments in the United States and in 15... more This paper documents the importance of nonbanks in retail payments in the United States and in 15 European countries and analyses the implications of the importance and multiple roles played by nonbanks on retail payment risks. It shows that nonbanks play multiple roles along the whole payment processing chain of five main payment instruments (card payments, electronic cheques, credit transfers, direct debits and e-money and other pre-funded/stored value instruments). The importance of nonbanks is assessed as prominent in the United States across all the considered payment instruments, and high and growing in Europe where however differences among the various countries and payments classes persist. In Europe the importance of nonbanks is expected to grow in the future, driven by industry and regulatory developments. The paper argues that nonbanks’ presence has shifted the locus of risks in retail payments toward a higher relevance of operational risk in its various forms (malfunctio...
SSRN Electronic Journal
This paper should not be reported as representing the views of the European Central Bank (ECB). T... more This paper should not be reported as representing the views of the European Central Bank (ECB). The views expressed are those of the authors and do not necessarily reflect those of the ECB.
1 We would like to thank the members of the ESCB-CESR Task Force 1 who carried out the fact-fi nd... more 1 We would like to thank the members of the ESCB-CESR Task Force 1 who carried out the fact-fi nding exercise on national regulations, the results of which we used in Chapter 5. Special thanks go to Mrs Jennifer Boneham of the UK Financial Services Authority and to Mr Marc Peters of the Commission bancaire, fi nancière et des assurances/Commissie voor het Bank-, Financie-en Assurantiewezen (CBFA) of Belgium for their contributions and comments. We are also indebted to an anonymous referee who provided us with very useful comments as well as suggestions on how to improve the presentation of the paper. The views expressed by the authors do not necessarily refl ect those of the European Central Bank.
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Papers by Simonetta Rosati