Commission warns of clearing overhaul
Euro Commission calls on securities industry to help produce new clearing and settlement system
The EU’s securities industry has been warned that legislation to improve the
clearing and settlement system will be imposed by the European Commission unless
the market players themselves come up with an effective scheme by the end of
Brussels said the present system was untenable. ‘No-one contests the need to
address the high cost of and corresponding difficulty of having access to
cross-border clearing and settlement,’ it said.
The current fragmented national monopolies in trading infrastructures such as
exchanges, clearing houses and securities depositaries ‘create high costs for
the EU economy, and represent significant impediments to efficient cross-border
trading in the EU’, it said.
Brussels said it had not yet decided on a specific plan of action, but work
was being carried out by the competition and internal services departments in