The analysis of risk and risk mitigation techniques in payment and securities settlement systems and the impact on central bank's oversight

This paper investigates the risks and risk mitigation techniques which are in use within the Luxembourg-based payment and securities settlement systems and evaluates what could be the impact of risk analysis on central bank oversight. It indicates how overseers can make use of different tools to assess the availability and appropriateness of risk mitigation techniques implemented by market practitioners and to further promptly react in case of contingency.