An implementation roadmap for overcoming Giovannini Barriers

Abstract

Harmonisation initiatives designed to bring down the Giovannini Barriers to efficient cross-border securities operations are moving into the implementation phase. As a result, all processes will be subject to tighter controls and validation against ever more stringent standards, market practice rulebooks and cost-per-transaction expectations. This paper considers the expected effects of each Barrier elimination method on securities processes, and how these are being brought about by specific actions in financial and industry institutions. It also looks at what the financial institutions are doing to further their own causes within the scope of each initiative as the Giovannini Barriers come down — and at how that work is being justified. The paper includes a generic implementation roadmap for measures to combat the Giovannini Barriers, showing the expected dates by which the industry's infrastructure will be ready for meaningful harmonisation of all securities processes.