Brussels, 06/12/2002 (Agence Europe) - In a speech before the "Association of Private Client Investment Managers and Stockbrokers", in Brussels on 5 December, the Commissioner for Competition, Mario Monti explained how European competition policy could contribute to the harmonious integration of the capital market in the EU. He thus said that "the fragmentation of the clearing and settlement markets has also been identified as one of the more costly obstacles to an integrated EU market for financial services". Thus, "the cost of settling a cross-border transaction is 42% higher than a transaction between two operators on the same national market", he pointed out. Currently, two clearing and settlement chambers dominate in Europe, these are Clearstream, subsidiary of Deutsche Borse, and Euroclear. Yet they are said to have anti-competitive conducts. "The Commission is studying the possible exclusion attitude of certain players on the international securities clearing and settlement markets", declared Mr. Monti, adding that his services would come to preliminary conclusions on the subject early-2003.
A report by Generoso Andria MEP (Forza Italia) recently adopted by the EP's Economic and Monetary Committee urges the Commission to present a specific directive on clearing and settlement of transaction concerning securities. The aim is to reduce the cost of the operations. The report highlights certain discriminatory pricing practices, Euroclear and Clearstream being directly implicated.