Securities settlement system (SSS)

A system which permits the holding and transfer of securities, either free of payment (FOP), against payment (DVP) or against other asset (DVD). It comprises all the institutional and technical arrangements required for the settlement of securities trades and the safekeeping of securities. The system can operate either on real time gross settlement (RTGS), gross settlement (GS) or net settlement (NS). A settlement system allows also the calculation (clearing) of the obligations and rights of participants. It guarantees the secure handling of transactions in dematerialised securities on the primary and secondary markets. It also ensures that delivery of and payment for the securities are effected simultaneously (delivery against payment principle).

Securities underwriters and dealers
individuals or companies that specialize in security market transactions by:
(1) assisting companies in issuing new securities through the underwriting and market placement of new security issues; and
(2) trading in new or outstanding securities on their own account. Only underwriters and dealers that act as financial intermediaries are classified in this category.
Security brokers and other units that arrange trades between security buyers and sellers but do not purchase and hold securities on their own account are classified as financial auxiliaries.