EFAMA welcomes the Commission's objective to achieve an efficient, integrated and safe system for the clearing and settlement of securities transactions, and to harmonise certain aspects of securities settlement in the EU. As major representatives of the buy-side in EU securities markets, investment managers are convinced that improving the efficiency and the safety of clearing and settlement systems in Europe will benefit all investors and further promote a pan-European Securities Market. It should be ensured that this harmonisation is consistent with other key projects that are underway, in particular with Target 2 Securities (T2S).
EFAMA has been working on issues related to Harmonisation of Securities Settlement in the European Union since they were invited to join the Harmonisation of Settlement Cycles Working Group (ad hoc group mandated by CESAME2) to represent the buy side and express the asset managers’ views about the need for the harmonisation of settlement periods and the length of a harmonised period (T+2 or T+3). To respond to this request, EFAMA circulated a survey to its members, and found out that asset managers were in favour of harmonising the settlement periods but had different views on the choice between T+2 and T+3. As of now, a majority of EFAMA’s members support T+2 as settlement period target.
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© EFAMA - European Fund and Asset Management Association
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