C & S

Clearing and Settlement title on cover

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The post-trading industry is one in which financial firms make money and one in which risk issues need careful management. Reliable payment, clearing and settlement structures are perceived to be essential to enable financial firms to withstand shocks. A great deal of the cost of trading and cross-border investment is attributed to the very complex process of clearing and settlement.

This book describes and explains:

1. what happens in clearing and settlement, and the roles of (and risks assumed by) the various participants in the post-trade marketplace
2. the law applicable to infrastructures, how they are are regulated, and the other topographical features of their legal landscape
3. the legal and practical aspects of risk management and operations of infrastructures
4. the risks faced by participants in payment, clearing and settlement systems – the agent banks – along with
practical and operational issues which they face in their roles.

Fully revised, updates for the 3rd edition include:

– Implications and impact of Brexit
– CPMI and IOSCO paper on central counterparty default (CCP) management auctions
– cyber-security and the resilience of financial market infrastructures (FMIs) and the wider market ecosystem.


The up-to-date and in-depth legal, regulatory and operational analysis provided by this book is an excellent source for policy makers and private sector executives to promote the much-needed post trade reform.

Dr Werner Frey, formerly Managing Director, AFME

Where it deals with areas of law which are overlapping, complex, and difficult to penetrate,… even expert readers will find this account useful and insightful. There are many other solid and practically useful sections of the book, notably those on interoperability, competition, and legal form

DrDavid Murphy, LSE

Articles and papers

Turing, Dermot, Clearing away after Brexit? (May 30, 2020). Available at SSRN: https://ssrn.com/abstract=3685103 or http://dx.doi.org/10.2139/ssrn.3685103

Turing, Dermot, CSDs and Participant Default (March 10, 2020). Binder, J-H., and Saguato, P., eds, Financial Market Infrastructure Law and Practice (OUP, Forthcoming), Available at SSRN: https://ssrn.com/abstract=3685093

Contribution to Law Commission project on Intermediated Securities

European Post Trade Forum (EPTF) Report

‘Untying Interconnectedness: Topology, Stability and the Post-crisis Reforms’ (2020). ‘Interconnectedness’ was considered to be a cause of the 2008 financial crisis, stimulating a number of studies into the topology of financial markets. Yet the analysis of instability within networks has tended to focus on a type of ‘contagion’ which imagines serial insolvencies, with non-performance of due obligations causing solvency issues for connected institutions. A more realistic assessment of the 2008 crisis was that it was due to a drying-up of available cash. A taxonomy of contagion is proposed, and the illiquidity model of contagion is then analyzed with reference to the observed core-periphery structure of financial market networks. Finally, the post-crisis reforms are judged against the view of ‘interconnectedness’ which emerges.

‘Central counterparties: magic relighting candles?’ (2019). Journal of Financial Market Infrastructures, vol 8, no 1, pp 27-49. In this paper, the rules of selected major CCPs (LCH, CME, Eurex and ICE) are reviewed for both their end-of-waterfall procedures and the rights granted to clearing members in end-of-waterfall  scenarios. These are compared against the arrangements for and resolution policies of CCPs.

‘The Morning After – the impact on collateral supply after a major default’ (2018) (with Manmohan Singh). IMF Working Paper No. 18/228. Ten years after the Lehman Brothers default, the paper looks in particular at the effect of the Liquidity Coverage Ratio on market participants in a post-default scenario.

‘Central counterparty resolution: an unresolved problem’ (2018) Journal of Financial Market Infrastructures, vol 6, no 2/3, pp 187-206 (with Manmohan Singh); substantially replicated as IMF Working Paper 18/65

‘What do we do with troubled CCPs?’ (2017) Vanderbilt Law Review En Banc, vol 70, pp 279-282

‘The Extra-Territorial Regulation of Clearinghouses’ (2016) Journal of Financial Regulation, vol 2, no 1, pp 21–55 (with Yesha Yadav); available here.

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