Standard setting and competition in securities settlement
Milne, Alistair (05.08.2005)
Numero
23/2005Julkaisija
Bank of Finland
2005
Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:bof-201501291024Tiivistelmä
This paper examines the impact of messaging and technical standards on
competition in the supply of securities transaction management services. Two
simple switching cost models are used to clarify the impact of standards on
barriers to entry and on the incentives to adopt harmonised and simplified
securities processing standards. Policy implications are discussed briefly.
Key words: securities settlement, standards, inter-operability, switching costs
JEL classification numbers: L15, L86
competition in the supply of securities transaction management services. Two
simple switching cost models are used to clarify the impact of standards on
barriers to entry and on the incentives to adopt harmonised and simplified
securities processing standards. Policy implications are discussed briefly.
Key words: securities settlement, standards, inter-operability, switching costs
JEL classification numbers: L15, L86