28 April 2011

Europeanissuers published comments on the regulation of central securities depositories

Europeanissuers support the preservation of national company law systems, rather than harmonisation at EU level, as securities law. Europeanissuers do not support harmonisation of the requirements for ownership.

Europeanissuers advocate:

- Effective management of systemic risk / integrity of ownership. CSDs with their central functions need to ensure (either by doing it themselves or by making sure others do it via rules) that:

1. the number of securities held in the CSD (both at the total level and the individual account level) is what it should be; and
2. settlement is as risk free as possible, to remove the possibility of reversals.

- Reduction of costs for issuers, with the possibility of choice and competition between CSDs, and also between CSDs and issuer agents as regards registration of ownership.

© EuropeanIssuers