Brussels, 09/12/2008 (Agence Europe) - On Monday 8 December 2008, the European Commission published the final version of the report by the CESAME group that has been working on removing barriers from the private sector to cross-border clearing and settlement. In 2001, a group of experts, chaired by Alberto Giovanini, identified fifteen technical, legal or fiscal barriers, known as the 'Giovanini Barriers' (see EUROPE 8099). The CESAME II group was set up in April 2008 to continue to work of CESAME I (see EUROPE 9643).
The CESAME group's report says that despite the removal of the eighth barrier on the issuing of securities, further efforts are required to remove the other barriers. Work on barrier 1 (diversity of IT platforms and interfaces) has made good progress. Standards have been adopted that should come into force by March 2011. Obstacle 3 on national differences in rules governing corporate actions is more problematic. Standard rules are expected in the first half of next year, which would be gradually introduced in the next few years (until 2012). further action is required for barriers 4 and 7 on national differences in availability or timing of intra-day settlement and operating hours and settlement deadlines. The report also looks at the removal of barriers from the public sector, noting the removing of barrier 5 on impediments to remote access and 14 on national differences in the legal treatment of bilateral financial clearing. Barriers 11 (withholding tax procedures disadvantaging foreign intermediaries) and 12 (tax collection) have been studied by the FISCO group of experts (see EUROPE 9648). (M.B. trans fl)