-
This report is the first of two dealing with the clearing and settlement of crossborder – or more accurately cross-system - securities transactions in the European Union. The objectives of the report are to assess the current arrangements for cross-border clearing and settlement and to identify the main sources of inefficiency relative to the corresponding arrangements for domestic transactions.
The fragmentation in the EU clearing and settlement infrastructure complicates significantly the post-trade processing of cross-border securities transactions relative to domestic transactions. Complications arise because of the need to access many national systems, whereby differences in technical requirements/market practices, tax regimes and legal systems act as effective barriers to the efficient delivery of clearing and settlement services. The extent of the inefficiency that is created by these barriers is reflected in higher costs to pan-EU investors and is inconsistent with the objective of creating a truly integrated EU financial system. A list of such barriers is provided in this report and urgent action is now required to remove them.
See also the commission press release for a short summary of the report.
A second report, which will be published in mid-2002, will examine the prospects for the EU clearing and settlement infrastructure, with particular emphasis on public-policy aspects.
© European Commission
Key
Hover over the blue highlighted
text to view the acronym meaning
Hover
over these icons for more information
Comments:
No Comments for this Article