ECMI paper on Cross-border Trading in Financial Securities

15 May 2003

In this paper the European Capital Market Institute (ECMI) analyses the case for the establishment of closely integrated Central Counterparties in Europe in light of the recent changes that have taken place in the European securities industry.

The paper surveys the key technical, political and legal difficulties for clearing and settlement in Europe. It discusses the economics of central counterparty clearing, highlighting the pros and cons of such systems. Lastly, it studies two possible European structures of central counterparties that could lead to lower cross border transaction costs.

ECMI Paper

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