Strasbourg, 17/01/2003 (Agence Europe) - On Wednesday, the European Parliament adopted the report by Italy's Generoso Andria (EPP-ED) on the communication relating to "Compensation and Delivery versus Payment Mechanisms in the European Union" that identifies the main problems in the workings of the compensation and delivery versus payment mechanisms, the two functions guaranteeing the outcome of equity transactions (compensations concern the calculation of the bonded capital between the buyer and the seller, delivery versus payment concerning the transfer of securities to the buyer).
Parliament calls on the Commission to draft a directive on compensation and delivery versus payment, setting common rules regarding authorisation, control, freedom of establishment and provision of services, as well as a common framework regarding infrastructure. Notably considering that the excessive cross-border costs should be abolished and that legal risks should be reduced, Parliament urges the Commission to undertake a study to see whether the American model, which is a body centralising compensation and delivery versus payment, could apply to the EU. Furthermore, it proposes that the next review of the directive on investment services provide for Member States granting investment companies of other Member States the right of access to compensation and delivery versus payment on their territory with the same objective, transparent and harmonised criteria that apply to local participants.
Furthermore, Parliament proposes: (1) establishing an information file identifying the differences between national legislation on compensation and delivery versus payment systems; (2) considering, in the long term, the creation of a framework for transferable security and, while waiting, set up a group of experts responsible for studying the issue of the harmonisation of laws on transferable securities within the EU; (3) introducing enhanced co-operation between national monitoring authorities; (4) getting rid of obstacles, notably, technical (like differences in computer systems).