Chapter 2

Review of Related Literature and Studies

This chapter presents the foreign literature, local literature, foreign studies, local

studies and synthesis and relevance of the related literature and studies.

Foreign Literature

“Clearing and settlement” is the processing of transactions on stock, futures,

and options markets.1 It is what happens after the trade. “Clearing” confirms the

identity and quantity of the financial instrument or contract being bought and sold,

the transaction price and date, and the identity of the buyer and seller. It also

sometimes includes the netting of trades, or the offsetting of buy orders and sell

orders. “Settlement” is the fulfillment, by the parties to the transaction, of the

obligations of the trade; in equities and bond trades, “settlement” means payment

to the seller and delivery of the stock certificate or transferring its ownership to the

buyer. Settlement in futures and options takes on different meanings according to

the type of contract. Trades are processed differently depending on the type of

financial instrument being traded, the market or exchange on which it is traded, and

the institutions involved in the processing of the trade (i.e., an exchange, a

clearinghouse, a depository, or some combination). 2 The clearing and settlement

mechanisms and institutions in the United States, the United Kingdom, and Japan

are described in the appendix. The differences in countries’ clearing and settlement
are important because clearing and settlement systems used for domestic trading

are now being called onto accommodate international participants. The integrity and

efficiency of a nation’s clearing and settlement systems are important to both its

internal financial and economic stability and its ability to compete with other nations.

Many markets have ‘clearinghouses’ that handle both the clearing process and some

of the settlement process. This is the most common system in the United States for

exchange-traded financial products. Many markets, including the U.S. markets, have

“depositories,” that hold stocks and bonds for safekeeping on behalf of their owners.

Where clearinghouses do not exist (e.g., in some European markets),

depositories may take on functions of clearinghouses. Depositories may transfer

ownership of stocks and bonds by ‘‘book entry” (a computer entry in the

depository’s record books) instead of physical delivery of certificates to the buyer,3

which saves time and money. There are also markets in which exchanges perform

some of the clearing and settlement functions (e.g., London’s International Stock

Exchange), and markets in which neither clearinghouses nor depositories exist (e.g.,

until very recently, foreign exchange, or “forex,” markets).

Differences in the clearing and settlement process among countries are often

linked to historical, economic, and cultural factors in their laws and customs. These

differences can expose international investors to extra risk in some instances.

Perceptions of the purposes of the clearing and settlement process vary widely

among countries. In the United States and Canada, where public policy supports

broad public access to the markets, the reduction of risk, through the clearinghouse

as an intermediary, is a major goal of clearing and settlement. These policies are

reflected in a hierarchy of protections for the clearinghouse, including minimum

capital requirements for clearinghouse members. In many other counties, risk

reduction is imposed before trading takes place, by controls on who is allowed to

participate, or by the participants ‘knowing their trading partners,’ and, in equities,

by reducing the time allowed to settle a transition. In these markets, clearinghouse

guarantee funds.

Local Literature

(MANILA, Philippines) Four Metro Manila cities bought medium compliance

scores for their participation in the 60-day road clearing operations, the Department

of the Interior and Local Government (DILG) stated on Friday. In a press conference,

Interior Secretary Eduardo Año first classified the participating nearby government

gadgets (LGUs) as having high, medium or low compliance ratings. This was primarily

based on how properly the involvement of the LGU used to be in the government’s

street clearing operations.The cities of Pasig, Muntinlupa, Manila and Quezon have

been given medium compliance ratings.Meanwhile, the cities of Marikina,

Muntinlupa, San Juan, Pasay, Parañaque, Caloocan, Malabon, Navotas, Valenzuela,

Las Piñas and Makati and the municipality of Pateros bought high compliance

ratings.Taguig City was the sole recipient of a low compliance rating.However, DILG

Spokesperson Jonathan Malaya stated Taguig, as well as the other cities which got

low-compliance ratings, may additionally be reevaluated. These had been the

requirements that we’ve set, why weren’t you in a position to meet it?. He added
that the DILG may probably reevaluate the low-rated cities with the aid of December

this 12 months so they should move up to a medium compliance rating. In a

declaration from the Manila Public Information Office, the nearby government of

Manila stated it is “thankful” for DILG’s ranking and that it will pursue its cleansing

operations in the city( Marquez, C and Hallare, K)

According to (Erma Edera) The Manila government will proceed to behavior

clearing operations even after the 60-day closing date given by using the

Department of the Interior and Local Government (DILG) has already ended. Manila

Mayor Francisco “Isko Moreno” Domagoso stated clearing operations be performed

frequently even after the closing date has lapsed.

“Let me be clear. Tapos na ang 60 days. Hindi pa natin alam ang grade ng

Maynila. Whether bagsak tayo o pasado tayo, immaterial iyon sa akin (The 60 days

have come to an end. We do no longer know the grade of Manila, whether or not we

fail or pass, that’s immaterial for me),” Domagoso said in his weekly application ‘The

Capital Report.’ He pressured that clearing operations will stay non-stop whether or

now not Manila passes or fails the DILG’s audit of public roads and sidewalks.

Foreign Studies

In current years the things to do of street companies have emerge as a topical

difficulty inside the urban spaces of the growing world. Still, research that explores

the geographical dimensions of avenue vending activities in Ghana is limited. Based

on subject interviews with road vendors, consumers, shop owners, and metropolitan

authorities, a variety of findings emerged. First, there were no noticeable

socio-economic variations amongst avenue vendors running inside the study areas.

However, substantial differences in the areas of starting place of companies had

been observed, with most of them originating from the Eastern, Ashanti and Central

Regions of the country. The learn about additionally indicates a development

amongst trades over time, in phrases of the types of goods which the vendors

exchange in. As can also be expected, a shift to greater value gadgets takes location

as traders build up capital. Another necessary discovering is that most of the

companies have been constantly on the run due to regular harassment, assault and

seizure of goods by using metropolitan authorities and other customers of the town

space. To be capable to address some of the problems identified, it is counseled that

town authorities undertake session alternatively than confrontational strategies in

dealing with avenue vendors ( Aseidu 2008).

Local studies

According to Jethro Malimata said the message of the video should be enough

to spark awareness on the circumstances that led poor Filipinos to illegal

businesses.“People are quick to comment about them being ‘illegal’ or ‘wrong’ but

fail to understand that the rules that make them illegal should be the same law

providing them with adequate livelihood,” Malimata said.

“We cannot continue to set aside fellow human beings as eye sores and

obstructions. We ought to recognize their actions as responses to a government that

cannot protect their welfare,” he added.Similar to Quiapo and Divisoria, Baclaran has

also been a known street market and home to informal hawkers selling affordable

goods in the south of Metro Manila.However, most peddlers take up the sidewalks

and parts of the roads in the district, causing road congestion.

The clearing operations in the commercial district of Baclaran conducted this

week was deemed successful at the expense of vendors’ livelihood. Some Filipinos

inferred this based on a video from The Philippine Star that showed a female vendor

telling members of the Metro Manila Development Authority or MMDA of their

plight. The news outlet first posted it on July 30. It immediately made rounds more

than a thousand times after. In the one-minute clip, the woman rants against MMDA

officials for being too harsh in stripping them of their only means of

living.“Pakinggan niyo naman kami. Hindi kami basura. Tao rin kami,

naghahanap-buhay. Papaalisin niyo kami, bigyan niyo naman kami ng pwesto na

maayos,” the woman said. Another person is heard saying they were not even given

a chance to pack up their wares and leave. A group of vendors staged a

protest against the city government which has not presented plans for relocation.

Twitter user Jethro Malimata said the message of the video should be enough to

spark awareness on the circumstances that led poor Filipinos to illegal businesses.

“People are quick to comment about them being ‘illegal’ or ‘wrong’ but fail to

understand that the rules that make them illegal should be the same law providing

them with adequate livelihood,” Malimata said. “We cannot continue to set aside

fellow human beings as eye sores and obstructions. We ought to recognize their

actions as responses to a government that cannot protect their welfare,” he added.

Award-winning poet Shakira Sison also gave her two cents worth on the lack of

alternate plans for those affected by clearing activities. “So we take away the livelihood

of the people who make an honest living, and when they’re forced to steal or deal/use drugs,

we kill them,” Sison said.