Brussels, 24/02/2006 (Agence Europe) - On 21 February, EU Commissioner for the Internal Market and Services, Charlie McGreevy, met CEO-level representatives of some two dozen companies to hear the views of important users of clearing and settlement systems and to discuss possible ways to dismantle barriers to cross-border clearing and settlement. In a press release, he said he was 'very positively impressed by users' convergence on the objectives to be pursued and by their determination and support for resolving the present difficulties. The important question now, is how to move forward.' Commissioner McCreevy went on: 'It is widely acknowledged that cross-border post-trading arrangements in the EU are complex and fragmented resulting in higher risks, inefficiencies and higher costs which are spread through the chain of intermediation. This obviously puts cross-border investments at a disadvantage compared to domestic investments'.
At the Annual Investment Fund Forum in September 2005, Charlie McGreevy put pressure on industry and mooted the creation of a pan-European clearing system to make economies of scale and help integrate Member States' money markets. The Commission is currently finalising a Regulatory Impact Assessment. It will then decide whether European legislation is necessary. In July 2005, the European Parliament adopted an own initiative report arguing that the EU should only legislate if the clearing and settlement market is genuinely failing (see EUROPE 8987).