Brussels, 16/12/2005 (Agence Europe) - On 15 December, the Commission published an assessment report on Directive 1998/26/EC concerning the definitive nature of the regulation. The directive aims to reduce the systemic risk associated with participation in payment and securities settlement systems. The report concludes that the legislation in question works well and the Member States are pleased. The latter consider that the directive improves protection against risk, increases legal security and predictability. Nonetheless, due to recent developments (mainly increased cross-border activity), it deserves to be clarified and simplified. The report highlights ten questions to be studied in order to improve the directive. In 2006, the Member States and the market players are due to be consulted on these points again. In order to develop the report, the Commission invited Member States to answer a lengthy questionnaire. All Member States did so except Cyprus, which felt it did not have sufficient experience in application of the directive. The European Central Bank was also consulted. The report is to be presented to the Council and to Parliament (Address: http://www.europa.eu.int/comm/internal_market/financial-markets/settlement/index_fr.htm ).