This section addresses a number of fundamental features of the SSS, and provides the market context for its operation. The questions establish the basic functions of the SSS, including the securities for which it provides settlement services, as well as whether the SSS offers other services. Questions on the organisational and ownership structure of the SSS elicit information on its legal basis and corporate governance.
A wide variety of organisational structures and business functions are possible for SSSs. For example, systems may be owned by central banks, by their participants or by an independent private sector entity that may or may not be operated for profit. It is helpful to distinguish the type of ownership, the organisational and decision-making structure of the SSS and the financial resources of the SSS, as well as the supervisory oversight to which the system is subject, as a first step in clarifying the respective responsibilities of all relevant parties.
A. What is the name of the SSS?
B. Where and in which time zone is the SSS located?
C. What functions does the SSS perform?
- Does the SSS serve as a securities depository and/or provide securities settlement services?
- What types of instrument are eligible for deposit at the SSS (e.g. debt, equities, warrants, etc.)?
- What types of instrument are eligible for transfer within the SSS?
- Please describe whether eligible securities are dematerialised, immobilised or transferred physically.
- Does the SSS provide safekeeping for physical certificates?
- Does the SSS provide cash accounts and/or provide funds transfers in conjunction with securities transfers? If so, in what currencies?
- Does the SSS provide a trade matching service? Do others provide such services for securities settled at the SSS?
- Does the SSS provide a trade netting service (as distinct from undertaking the settlement of securities transfers on a net basis)? Do others provide such services for securities settled at the SSS? In either case, what types of netting (bilateral or multilateral), if any, are performed?
- Does the SSS offer a securities lending or borrowing programme?
- Does the SSS provide custodial and/or related services such as the collection of interest, dividends, principal or withholding tax reclamations? Which types of service are provided?
- Does the SSS act as a central counterparty or principal to transactions with its participants?
- Other? Please specify.
D. What type of organisation is the SSS?
- Please indicate whether the SSS is a public sector or private sector entity.
- Please indicate whether the SSS is organised on a for-profit or a non-profit basis.
- What is the legal basis for the establishment of the SSS and for securities transfers made through it?
E. Please describe and provide a diagram outlining the organisational and ownership structure of the SSS.
- Who are the owners of the SSS?
- What entity or entities operate the SSS? Which functions of the SSS, if any, are outsourced to third parties?
- Does the SSS have a Board of Directors?
- What is its composition?
- What are its responsibilities?
F. Please describe the financial resources of the SSS.
- Amount of paid-in capital and retained earnings?
- Guarantees, insurance coverage or other similar arrangements?
- Credit lines or letters of credit?
- Powers to assess participants or equity holders?
G. Please describe whether the SSS or its operator is subject to authorisation, supervision or oversight by an external authority.
