Other settlement systems
Securities clearing and settlement systems are critical components of the financial system strongly linked to payment systems, where the financial settlement of their transactions occurs.
In Portugal the following entities operate in this area:
- Interbolsa, which operates securities settlement systems (SSS) and simultaneously holds a central securities depository (CSD);
- OMIClear, the Portuguese entity acting as clearing house and central counterparty (CCP) for energy market derivatives;
- LCH SA, a credit institution incorporated under French law offering clearing and central counterparty services for operations in the national capital market.
Banco de Portugal has an interest in monitoring the performance of securities clearing and settlement systems due to the significant impact that these may have on payment systems, where the financial settlement of their transactions occurs.*
For monitoring these financial market infrastructures, Banco de Portugal participates as a member of OMIClear’s Regulators’ College, in its capacity as central bank of issue of the settlement currency, in representation of the Eurosystem, with responsibilities in the authorisation process under EMIR, the extending of new services and the altering of this infrastructure’s risk policy parameters.
As regards Interbolsa, Banco de Portugal acts as the relevant authority in its role as central bank of issue of the settlement currency and as central bank where the financial component of securities transactions is settled. The Bank is consulted in the process of assessing and authorising Interbolsa to pursue its business under the regulation in force.
* Nevertheless, it is important to highlight that the entity responsible for overseeing securities clearing and settlement systems is not Banco de Portugal but the Portuguese Securities Market Commission (CMVM), as described in the Securities Code.