Secondary markets are markets where government securities are traded after they have been issued or sold on primary markets. A liquid secondary market is an important source of price signals and is therefore essential for the orderly funding of government financing requirements. The government plays an important role in the development of secondary market structures (e.g. types of negotiations allowed, roles for dealers and intermediaries, trading mechanisms, market transparency, regulations) guided by objectives to ensure an efficient price discovery process and to improve the liquidity of securities. An efficient post-trading securities settlement system is a principal component of the infrastructure necessary for developing government securities markets, including the different settlement arrangements and the role of central counterparties.