ESF Response to Consultation on Clearing and Settlement

27 August 2002

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In its press release the European Securities Forum, ESF, reacts to the EU Commission Consultation on Clearing and Settlement.

The key points of the ESF with the creation of a uniform securities code as the single most important requirement for an integrated European capital market are:

An integrated clearing and settlement environment is an essential pre-condition for efficient post-trade processing of cross-border securities transactions.

Simultaneous and concerted actions of the private sector and national and EU authorities will be required to remove existing barriers, competitive distortions and unequal treatment.

ESF welcomes an acceleration of the process of legal and regulatory harmonisation in Europe by the EU Commission. European non-EU countries with a sizeable financial sector should be included in the process of legal and regulatory harmonisation.

The removal of restrictions embodied in national law and a single legal framework in form of a uniform securities code are the highest priorities for political and regulatory bodies.

The highest priorities for the private sector are the establishment of communication standards and the development of harmonised processes and procedures.

PRIMA and the Hague Convention can only be interim solutions to resolve the legal fragmentation in Europe; therefore ESF firmly supports the development of a uniform securities code for Europe that includes the issues of insolvency and transfer of ownership.

Common functional definitions of clearing and settlement activities are the basis to create a level playing field.

Common high-level regulatory principles should aim at reducing risk and increasing efficiency; they should be supplemented by industry best practices in the areas of operations, IT standards and risk management.

PR ESF press release

See also the article of Pen Kent, Director, European Securities Forum

© ESF – European Securities Forum