International Committees Request Comment on Settlement Systems Report

Washington, DC, February 27, 2001 - The Committee on Payment and Settlement Systems (CPSS) and the Technical Committee of the International Organization of Securities Commissions (IOSCO) recently published a consultative draft report on securities settlement systems. CPSS and IOSCO are seeking comments on the draft report by April 9, 2001.

The draft report identifies minimum requirements and best practices for securities settlement systems, presented in the form of 18 headline recommendations and accompanying explanatory texts. The recommendations are designed to cover systems for all types of securities in both industrialized and developing nations. They also are designed to cover settlement of both domestic trades and cross-border trades. The recommendations involve issues relating to legal risks, presettlement and settlement risks, operational risks, and custody risks, as well as other issues such as governance and transparency.