.jpg)
The Organisations represented by the Federation of European Securities Exchanges (FESE), the European Association of Central Counterparty Clearing Houses (EACH) and the European Central Securities Depositories Association (ECSDA) have on October [31] agreed on a Code of Conduct for Clearing and Settlement.
The undersigning exchanges, clearing houses and central securities depositories share the objective of achieving greater efficiency and further integration of European capital markets. The objective of the Code of Conduct – in line with the objectives of the European Commission – is therefore to allow investors to trade European securities within a consistent, coherent and cost-efficient European framework.
The Code of Conduct will cover the following areas:
- Price transparency, to help customers to understand and compare prices and services.
- Standard unilateral access between Organisations and interoperability, to enhance the ability of Organisations to interconnect and ultimately increase freedom of choice for market participants.
- Service unbundling and accounting separation, to facilitate competition, increase customer choice and provide relevant information on the services provided.
- Monitoring of industry action.
This Code of Conduct will be presented to EU Commissioner Charlie McCreevy, on November 7.
Following the finalisation of the Code of Conduct, a phased implementation will then begin:
- By 31 December 2006, price transparency will be in place.
- By 30 June 2007 access and interoperability conditions will be established.
- As of 1 January 2008, service unbundlling and accounting separation will be implemented.
Furthermore, the undersinging Organisations understand that the Commission is considering proposing the extension of the self-regulatory approach from cash equities to other asset classes and service providers once the Code has entered into force. This review will take place at the time of implementation of the Market in Financial Instruments Directive (MiFID), further enhancing the objectives pursued by the Commission in MifID.
