For this purpose, a standard international agreement is signed between local and foreign brokers together with both brokers' stock exchanges and settlement institutions. No need for legislative amendment for remote membership. The trading volume of the local brokers increase. This system decreases the costs related to the establishment of CTP and CSI, and does not have the potential legal and organizational problems of such establishments. Risk of the local brokers, and their stock exchanges and CSDs and SSSs increase.
Operational difficulties increase.
Development of a standard agreement and its application seems problematic. Hence, this will create some risks. Financial sufficiencies of these institutions will be required. The settlement risks of brokerage houses can also create some problems for these CSDs and SSSs. CSI makes confirmation with the CSDs regularly.