Oversight of securities market infrastructure
Need for oversight
The ECB has an interest in the proper functioning of securities clearing and settlement systems (SCSSs).
Any major malfunction could endanger:
- the smooth implementation of monetary policy,
- the smooth functioning of payment systems, and
- the overall stability of the financial system in the euro area.
Hence, proper oversight of SCSS is necessary.
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Competent authorities
Oversight of SCSSs is done by central banks. Central banks co-operate with other
authorities such as securities regulators in order to safeguard overall stability
of the financial system in the euro area and the orderly functioning of the market.
Custodian banks are increasingly involved in operating SSSs and some central
securities depositories have a bank status. Therefore, co-operation with prudential
supervisors is also important. Prudential supervisors, overseers and
securities regulators co-operate closely to meet their objectives.
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