Introduction
According to the International Organisation of Securities Commissions (IOSCO), securities settlement systems are a critical component of the infrastructure of global financial markets. In recent years, trading and settlement volumes have soared, as securities markets have become an increasingly important channel for intermediating flow of funds between borrowers and lenders and as investors have managed their securities portfolios more actively, in part because of declining transaction costs.1 This reflects a three-fold realization: the market is now too systemic for inefficiency, trading volumes demand modernized speed, and global capital mandates a cheaper and faster settlement environment.