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Prospects and challenges of a pan-European post-trade infrastructure
Journal of Securities Operations & Custody,
5
(4),
342-356
(2013)
Abstract
After more than a decade of indecision, the European Union (EU) is finally now set to implement a consistent regulatory architecture for clearing and settlement. Following the agreement on a European market infrastructure regulation (EMIR), the European Commission has proposed harmonised rules for centralised settlement depositaries (CSDs), while the European Central Bank (ECB) is moving forward with its plans for a central eurozone settlement engine. After the regrettable circumvention of the 2006 Code of Conduct, the EU now will have a consistent framework allowing cross-border provision of services by and competition among clearing and settlement entities in the EU, with rules ensuring open access and interoperability. This situation will bring about a sea change in the sector, leading to further consolidation at the European level, as has also been witnessed in the area of trading platforms since the adoption of the investment services directive in 1993 and the Markets in Financial Instruments Directive (MiFID) in 2007. But important challenges remain in striking a balance between market efficiency and financial stability.
Keywords: EMIR; post-trading; T2S; financial reforms; collateral; CCP
The full article is available to subscribers to the journal.
Author's Biography
Karel Lannoo is Chief Executive of the Centre for European Policy Studies (CEPS), one of the leading independent European think tanks. He is also the independent director of Bolsas Y Mercados Espanoles (BME), a listed company that manages the Spanish securities exchanges. He directs the European Capital Markets Institute (ECMI) and the European Credit Research Institute (ECRI), which are both operated by CEPS. His work has been published in some books and numerous articles in specialist magazines and journals on general European policy, and specific financial regulation and supervision matters.
Diego Valiante is Head of Research at the European Capital Markets Institute (ECMI) and Research Fellow at the Brussels-based think tank, the Centre for European Policy Studies (CEPS). On top of his three degrees in economics and law & economics (summa cum laude), he holds a PhD in law and economics from LUISS University. Diego’s work on economic and regulatory aspects of financial markets and services has been published extensively and he regularly advises European institutions and market practitioners. In 2011, the Financial News (Dow Jones) included him in its list of the ‘top 40 rising stars in trading and technology’ aged under 40.
