Internal Market and Services Commissioner Charlie McCreevy said: "I encourage the settlement industry and consumers to give us their views on the evaluation report. Together with the opinions we are receiving from Member States and the ECB, this will help us to establish whether or not the Settlement Finality Directive needs to be revised, and to ensure that the EU's payment and securities settlement systems remain safe and secure."
Settlement Finality Directive
The Settlement Finality Directive was the EU's response to the need to minimise systemic risk and to ensure the stability of payment and securities settlement systems, especially in the light of Economic and Monetary Union. It provides that transfer orders entered into these systems cannot be revoked or otherwise invalidated, even when a participant in the system becomes insolvent. Making these transfer orders legally binding and enforceable contributes to the stability of settlement systems and thus to stability of the financial sector as a whole.
The Directive specifies (Article 12) that the Commission should produce a report on the Directive and, where appropriate, propose revisions to it.
Background
Payment systems are highly automated computerised arrangements through which
payments of money, usually in large amounts, are effected. Securities settlement
systems perform a similar function in relation to transfers of securities and
are where market trades are usually executed and recorded.
The evaluation
report is available at:
http://europa.eu.int/comm/internal_market/financial-markets/settlement/index_en.htm
