Documenti di Didattica
Documenti di Professioni
Documenti di Cultura
Settlement
Tarmiden Sitorus
Deputy Director
Bank Indonesia
Conference on Development of
Indonesian Government Bond
Market
July 25-26 2000
Jakarta, Indonesia
Introduction
Benefits
Overview of the clearing and settlement
process
The BI-SKRIP system
Concluding Remarks
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Part I:
Overview of the
clearing and
settlement process
Standard Model
International Standards
and Guidelines
Risks
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Basic Information
Rules and Procedures
Relationships with Participants
Relationship with other Securities Settlement
Systems
Securities transfers, funds transfers and linkages
Default procedures
Securities overdrafts, securities lending and back-toback transactions
Risk control measures
Operational risks
Risks
Credit Risk: A counterparty does not settle an
obligation
Replacement risk: Market loss on an undelivered
security
Principal risk: Loss of security
Liquidity risk: Delay in settlement date due to
funding
Systemic risk: Domino effect whereby settlement
failure cause other participants to fail
Legal Risk: Claims in law are unclear or may not be
upheld (legal risk)
Operational Risk: The system breaks down
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Part II:
The BI-SKRIP
system
Architecture
Clearing and
Settlement Examples:
Free of Payment
Delivery v Payment
Sub-Registries
x8
BER
- Central Registry
- Clearing/Settlement
Banks
x 160
Securities companies
Companies
Individuals
Foreign entities
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Sub-Registries
Must be established under Indonesian law
Must not be in bankruptcy, or the threat thereof
Three years experience and Rp1 trillion of
other securities in custody
Suitable business networks
Safe, reliable and trusted scripless registry
system
Qualified and capable management and staff
Financially sound
Government bond registry activities are
supervised by Bank Indonesia.
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Selling
Investor
Selling
Buying
Broker/Bank
Broker/Bank
FOP Securities
Transfer Form
(SPPR)
BI-SKRIP
Donor/
Legator
Buying
Investor
Statement
of Account
Beneficiary
Sellers
Sub-Registry
Buyers
Sub-Registry
BER
Securities Transfer
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Bank
Statement
Selling
Buying
Broker/Bank
Broker/Bank
DVP Securities
Transfer Form
(SPPR)
Sellers Bank
BI-SKRIP
Sellers
Sub-Registry
Buyers
Sub-Registry
Statement
of Account
Buying
Investor
DVP Payment
Order
(SPPP)
Buyers Bank
BER
DVP Settlement
Payment
Securities Transfer
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Selling
Buying
Broker/Bank
Broker/Bank
Buying
Investor
BI-SKRIP
Deutsche Bank
ABN Amro
Citibank
HSBC
BER
DVP Settlement
Payment
Securities Transfer
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Selling
Buying
Broker/Bank
Broker/Bank
Buying
Investor
BI-SKRIP
KSEI
Bank Niaga
BER
Bank Internasional
Indonesia
DVP Settlement
Payment
Securities Transfer
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Buying
Investor
DVP Securities
Transfer Form
(SPPR)
Sellers
Sub-Registry
Sellers Bank
Statement
of Account
BI-SKRIP
BER
DVP Settlement
DVP Paymen
Order
(SPPP)
Buyers
Sub-Registry
Buyers Bank
RTGS DVP
Payment Order
RTGS
Payment
Securities Transfer
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