Commissioner McCreevy announced that the Commission would decide in the second quarter of 2006 on measures to tackle the persistent barriers in this area. This decision will be based on the Commission's impact assessment and thorough consultations with all parties concerned (IP/04/551). Clearing and settlement is the "plumbing" of financial markets and takes place after trading to transfer the securities to the buyer and the payment to the seller.
Commissioner McCreevy said: "The safety and efficiency of Europe's securities clearing and settlement systems are important for furthering the integration, proper functioning and competitiveness of capital markets. EU markets are currently served by a multitude of different systems mostly created to service national demands. It is widely acknowledged that cross-border post-trading arrangements in the EU are complex and fragmented resulting in higher risks, inefficiencies and higher costs which are spread through the chain of intermediation. This obviously puts cross-border investments at a disadvantage compared to domestic investments. This situation needs to be addressed: private and public sector bodies must act to trigger change. I had yesterday an open discussion with major users to discuss their objectives. I was very positively impressed by users’ convergence on the objectives to be pursued and by their determination and support for resolving the present difficulties. The important question now, is how to move forward.
Background
The meeting was scheduled as part of an ongoing reflection on clearing and settlement. The Commission, supported by the European Parliament and Member States, wants to foster the efficient, integrated and safe securities clearing and settlement market the EU needs to ensure the EU-wide free flow of capital, to compete globally and to support the aims of the Lisbon agenda.
In a perfect Single EU capital market, clearing and settling across borders
should be as inexpensive and safe as domestically. Presently, the Commission is
studying the economic case for action while finalising a Regulatory Impact
Assessment. It will then decide whether European legislation is necessary.
Stakeholders are very much involved in this process. The Commission expects
industry to push for changes within their ambit and to adapt to the new
environment which will emerge.
Further information on clearing and settlement
is available at:
http://europa.eu.int/comm/internal_market/financial-markets/clearing/index_en.htm
Participants are as follows (certain other invitees from other companies and other geographical areas regretted that they were unable to participate):
- DE SWAAN, Tom, Member of the Managing Board, ABN AMRO Bank N.V.
- MUNSTERS, Roderick, Chief Executive Officer, ABP
- FABER, Dr. Joachim, Member of the Board of Management, Allianz AG
- PASSERA, Corrado, Chief Executive Officer, Banca Intesa
- BARREIRO, José, Member of the Executive Committee, BBVA/Banco Bilbao Vizcaya Argentaria
- PEBEREAU, Michel, Chairman, BNP Paribas
- MILLS, William, Chairman and CEO, EMEA, CIB, Citigroup
- ANNUSCHEIT, Frank, Chief Information Officer, Commerzbank AG
- COSTE, Thierry, Président, Chairman and Chief Executive Officer of Crédit Agricole Asset Management, Crédit Agricole S.A.
- LAMBERTI, Hermann-Josef, Member of Board of Managing Directors, Deutsche Bank AG
- YARROW, Alan, Vice Chairman, Dresdner Kleinwort Wasserstein
- MAYSTADT, Philippe, President, EIB/European Investment Bank
- ERASIM, Erwin, Member of the Managing Board, Erste Bank der österr. Sparkassen AG
- EARLE, Glenn, Chief Operating Officer, Goldman Sachs International
- MILLER, Heidi, Executive Vice President, Chief Executive Officer of Treasury & Securities Services, JP Morgan Chase
- ROLET, Xavier, Managing Director, Senior Client Relationship Management, Europe, Lehmann Brothers
- WIGLEY, Bob, Chairman, EMEA, Merrill Lynch International
- WALKER, Sir David, Senior Adviser, Morgan Stanley
- CROWE, Brian, Chief Executive, Global and Banking and Markets Division, Royal Bank of Scotland
- URL, Manfred, Member of the Board of Managing Directors, RZB/Raiffeisen Zentralbank Österreich AG
- RODRíGUEZ-INCIARTE, Matías, Vice-Chairman, Santander Central Hispano
- SAINT-SAUVEUR, Hervé, Senior Advisor to the Chairman, Société Générale
- STANDISH, Clive, Member of the Group Executive Board, UBS
- PROFUMO, Alessandro, Managing Director
