@inbook{50e25add2a5d4bd39a88927124ca5836,
title = "Equity clearing and settlement models in the UK and Taiwan: Market stability and investor protection perspectives",
abstract = "This chapter uses comparative law analysis to examine the systems and processes of post-trading infrastructure – clearing and settlement – in the UK and Taiwan. Its purpose is to identify the differences in the operating models, the governance and the regulatory thinking behind them. Taiwan clearly shows its cautious approach to post-trading infrastructure which is evidenced in its vertical silo system and in its direct and transparency holding system. However, Taiwan does not provide clear legal rules dealing with insolvency risk and settlement finality. It is also not clear why Taiwan does not follow the {\textquoteleft}place of the relevant intermediary approach{\textquoteright} (hereinafter {\textquoteleft}PRIMA{\textquoteright}). It is argued that Taiwan can learn from the UK{\textquoteright}s non-vertical silo model to increase innovation. Taiwan could also adopt the trust and non-transparency indirect holding system to increase investor protection and settlement finality to increase legal certainty.",
keywords = "equity, share trade, clearing, settlement, central counter party, central securities depository, stock exchanges, investor protection, market stability",
author = "Joseph Lee",
year = "2016",
month = nov,
day = "12",
doi = "10.1007/978-981-10-1995-1_25",
language = "English",
isbn = "9789811019944",
series = "Economics, Law and Institutions in Asia Pacific",
publisher = "Springer Nature",
pages = "423--444",
editor = "{Lo }, {Chang-fa } and Li, {Nigel N.T.} and Tsai-yu Lin",
booktitle = "Legal Thoughts between the East and the West in the Multilevel Legal Order",
address = "United States",
}