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This step is taken against the background of the European Code of Conduct for clearing and settlement, which Deutsche Börse agreed together with the other industry representatives from across Europe on 7 November.
Among other things, the code defines the price transparency requirements that apply at every stage of the value chain, which will take effect on 1 January 2007. Within Deutsche Börse Group the requirements affect the Xetra and Xontro (trading floor) trading systems, the central counterparty for equities operated by Eurex Clearing and Clearstream’s respective settlement and custody business.
The increased price transparency expected to result from the Code of Conduct will support the European Commission in its efforts to promote the further integration of the European cash equity markets. In future, customers will even better be able to compare in advance which costs are incurred for which equity transaction service and to reconcile invoices received ex post with the published price lists.
Matthias Ganz, member of Deutsche Börse’s Executive Board said, “With its rapid implementation of the first step of the Code of Conduct, Deutsche Börse is giving its full support to this marketled initiative. We are convinced that the industry will be able to successfully implement the Code, which will play a key role in helping to boost the efficiency and competitiveness of European cash markets.”
In addition to price transparency, the Code of Conduct also aims to improve access to individual market participants and interoperability, and to unbundle services and separate accounts of each service segment. Deutsche Börse already complies with the majority of the requirements, which are to be fully implemented in two further steps by the end of 2007.