IDEAS home Printed from https://ideas.repec.org/a/vrs/poicbe/v14y2020i1p925-939n88.html
   My bibliography  Save this article

Determination by the Settlement Systems of the Required Collateral Imposed to Participants

Author

Listed:
  • Baranga Laurentiu Paul

    (Bucharest University of Economic Studies, Bucharest, Romania)

  • Zalinca Iulian

    (Bucharest University of Economic Studies, Bucharest, Romania)

Abstract

The dynamics of the increase in volume and amount of the financial or commercial transactions during the last decennials has amplified the role of clearing and settlement systems, along with the payment ones. From the quality of these systems as a financial markets stability provider also derives the concern for the management of financial risks mainly generated by the participants in these systems. The clearing-settlement systems, operated by infrastructure entities of the capital markets, ensure, within certain limits, a risk management for the incidents that could occur in the settlement activity regarding the financial transactions concluded between participants. We are going to present a methodology for determining the required collateral that must be maintained/updated by the debtor participants of a clearing-settlement system in order to ensure a robust management of the risks that could occur in the settlement operations. This methodology can be applied by any infrastructure entity of the capital market that manages collateral systems to limit the number of cases of settlement fails in financial transactions.

Suggested Citation

  • Baranga Laurentiu Paul & Zalinca Iulian, 2020. "Determination by the Settlement Systems of the Required Collateral Imposed to Participants," Proceedings of the International Conference on Business Excellence, Sciendo, vol. 14(1), pages 925-939, July.
    • Handle: RePEc:vrs:poicbe:v:14:y:2020:i:1:p:925-939:n:88
    DOI: 10.2478/picbe-2020-0088
    as

    Download full text from publisher

    File URL: https://doi.org/10.2478/picbe-2020-0088
    Download Restriction: no
    File URL: https://libkey.io/10.2478/picbe-2020-0088?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. BARANGA, Laurentiu Paul & PANAIT, Iulian, 2018. "Estimating The Credit Risk Score For Non Bank Stock Exchange Intermediaries In The Eventuality Of Changeover To Euro Currency," Studii Financiare (Financial Studies), Centre of Financial and Monetary Research "Victor Slavescu", vol. 22(4), pages 25-40, December.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Razvan Sorin Șerbu & Laurentiu Paul Baranga & Ovidiu Gheorghe Petru, 2021. "Creditworthiness Assessment for Credit Institutions and for the Risk Associated with Excessive Leverage toward Sustainable Performance," Sustainability, MDPI, vol. 13(21), pages 1-16, October.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:vrs:poicbe:v:14:y:2020:i:1:p:925-939:n:88. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Peter Golla (email available below). General contact details of provider: https://www.sciendo.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.