Brussels, 19/12/2002 (Agence Europe) - The European Commission has published on the Internet a summary of 61 responses to its consultation over clearing and settlement. The aim set out in a communication published last May was to determine whether there was need for legislation to eliminate the obstacles impeding their operations that allow for transactions in securities and derived instruments (confirmation of transaction clauses, calculation of liabilities, delivery of securities against payment, etc.). The Commission announces that once it has scrutinised analysis of the responses, it will present a "policy paper", setting out the measures it intends taking.
The main conclusions of this consultation is that the majority of interested parties consider that obstacles do need removing and distortions to competition for cross-border transactions need avoiding. The responses on the need to legislate, however, are not so clear. "There is general agreement over the fact that the market and not the authorities need to determine the model to implement to consolidate the services", notes the Commission. It is especially true for the elimination of technical obstacles. Relating to regulatory harmonisation, caution is required: "many correspondents underpinned the need not to endanger existing national structures and ensure that the needs of small issuers, intermediaries and less sophisticated investors are not forgotten", says the summary. Over 50% of the respondents are in favour of the creation of a Community-wide legislative framework, but many nuances are contained in this framework. Financial institutions are the most in favour, whereas infrastructure suppliers are more sceptical.
Generally-speaking, the public authorities of Member States (including the monitoring authorities and central banks) reacted more to the consultation than market participants (financial establishments, stock exchanges, clearing houses, settlement systems and associations). The questions were essentially on: 1) the best way to go about eliminating barriers of a legal, technical and tax nature; 2) the way to create a level playing field for competition; 3) means of ensuring equal access to services; 4) the need for a European directive. The main obstacles were identified in the second report of the Giovanni Group of financial experts, who stressed the complexity and fragmentation of current the systems. The summary of the consultation is available on: http: //europa.eu.int/comm/internal_market/en/finances/mobil/clearing/index.htm .