Upgrading the plumbing of global markets

The Group of Thirty’s 20 recommendations for global clearing and settlement

Mattias Levin. Research Fellow, Centre for European Policy Studies (CEPS). www.ceps.be

During the last two years back office issues have become the focus of increasing regulatory attention. As obstacles to financial market integration have been dismantled, regulators have become aware that the basic infrastructure – ie, clearing and settlement arrangements – needs to be adapted to meet the needs of the cross-border business that follows in the wake of financial market integration. Released on 23 January, the Group of Thirty’s (G30) Global Clearing and Settlement: A Plan of Action ¹ is the latest, but far from final, intervention into the regulatory debate on how to adapt the infrastructure to global needs.