| Section | | Page |
| Foreword |
| Members of the Delivery Versus Payment Study Group |
| 1 | Introduction and Summary | 1 |
| Introduction | 1 |
| Summary | 2 |
| Additional Issues Relating to Cross-Border Securities Transactions Summary | 8 |
| 2 | Analytical Framework: Credit and Liquidity Risks in Securities Clearance and Settlement | 10 |
| Key Steps in Clearance and Settlement | 10 |
| Types and Sources of Risk | 12 |
| The Delivery Versus Payment Principle | 15 |
| 3 | Alternative Structural Approaches to Delivery Versus Payment | 16 |
| Identification of Alternative Models | 16 |
| Model 1: Gross, Simultaneous Settlements of Securities and Funds Transfers | 17 |
| Model 2: Gross Settlements of Securities Transfers Followed by Net Settlement of Funds Transfers | 20 |
| Model 3: Simultaneous Net Settlement of Securities and Funds Transfers | 21 |
| 4 | Common Risk Management Issues and Common Safeguards: A Synthesis | 25 |
| Counterparty Credit and Liquidity Risks | 25 |
| Risk of Failure of a Settlement Bank, Guarantor or Custodian | 28 |
| 5 | Evaluation of Implications of Securities Settlement Systems for Financial Stability | 30 |
| Legal Basis for the System | 31 |
| Understanding of Risks | 32 |
| Incentives and Capabilities to Manage Risks | 33 |
| Arrangements for Ensuring Timely Completion of Settlements | 35 |
| Admission Criteria | 37 |
| Operational Reliability | 37 |
| Conclusions | 38 |
| Annex 1 | Group of Thirty Recommendations Regarding Securities Clearance and Settlement | A1-1 |
| Annex 2 | Glossary | A2-1 |
| Annex 3 | Key Features of Securities Transfer Systems in the G-10 Countries | A3-1 |
| Annex 4 | Minimum Standards for Cross-Border and Multi-Currency Netting and Settlement Schemes | A4-1 |
