FBE Response on European Code of Conduct for C&S

17 November 2006

The FBE issued its response to the European Code of Conduct for Clearing and Settlement and calls for some clarifications from the Commission. Specifically, FBE regrets the inclusion of the reference in the chapter entitled “Scope of the Code of Conduct”. Although the Code is not intended to apply to banks we regret that this reference creates an impression that banks could be brought into the scope of the Code, in some form and at some point in the future. FBE believes that there would not be any justification for including banks in the scope of the Code of Conduct in respect of price transparency.

FBE is also concerned about the Commission’s intention in paragraph 4 of the Code which refers to an extension of the Code to “other […] service providers” and calls for clarification on this point.

Finally, the FBE calls on the Commission to provide clarity on the timing of the proposed extension of the Code to other products such as bonds and derivatives.

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