Local view for "http://purl.org/linkedpolitics/eu/plenary/2005-07-06-Speech-3-456"
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"en.20050706.34.3-456"2
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"Mr President, ladies and gentlemen, clearing and settlement are not only the back office of the financial institutions, they are the backbone of the securities market and hence of the capital markets. They constitute all the provisions that investors and financial operators need to hold and transfer securities. Clearing and settlement do not affect the capital markets: they
the capital markets. They contribute to the smooth functioning of the financial world and of the economy of the European Union.
It is widely acknowledged that cross-border clearing and settlement are hindered by a number of barriers, the nature and impact of which vary, as you know. This situation considerably increases the costs of clearing and settlement at European Union level in comparison to national systems, and particularly in comparison to the situation in the United States. It also increases the risks, legal and otherwise, of cross-border transactions. It therefore clearly constitutes a major hindrance to cross-border investments, to the diversification of portfolios, and so on.
It is undeniable that we have not yet achieved a European Union market in this field, with the result that we cannot benefit from the advantages of the growth in the European Union that an efficient clearing and settlement system could bring, and that we will not be able to compete effectively at global level. To put it bluntly, the objective of all issuers of securities being able to reach all investors is still a long way from being achieved. That is why the Commission welcomes the interest that the European Parliament is taking in this issue in responding to the Commission communication of April 2004.
The Commission’s declared objective is to promote the creation of secure and efficient clearing and settlement systems in the European Union, guaranteeing conditions of fair competition for the various issuers. We want to eliminate the obstacles to cross-border clearing and settlement, and thus to enable clearing and settlement service providers, if they so wish, to access other markets in the European Union and provide their services in those markets, within a commonly accepted regulatory and supervisory framework. In other words, we want to create a genuine market in clearing and settlement. Our aim is to make cross-border clearing and settlement just as cheap, just as efficient and just as secure as the national clearing and settlement systems in the European Union.
In 2004, the communication launched very extensive consultations on our initial approach to the policy to be adopted in this field. Our policy sought not simply to manage the current market situation but to improve the future environment for clearing and settlement in the European Union. This environment would enable the operators to implement their strategy, firstly without being hindered by superfluous barriers, and secondly in full compliance with essential public interest objectives such as the security of the systems, fair competition, efficiency and so on. The aim, in cooperation with the private and public sectors, was to eliminate the Giovannini barriers.
In addition, we considered it essential to ensure that clearing and settlement service providers were not prevented from entering other EU markets and providing their services there, nor faced with unreasonable conditions when they wished to do so, simply because the competent authorities refused to recognise the equivalence of the regulatory systems or supervisory practices of other Member States. If this type of barrier were not lifted, the benefits of lifting the Giovannini barriers, which is the responsibility of the private sector, would be diluted or not fully exploited.
These are complex issues, which is why we are being rigorous about applying our twofold commitment to have ongoing consultation and an in-depth impact assessment. With regard to ongoing consultation, we have set up three groups that are working very intensively. The CESAME Group monitors and encourages the progress made by the private sector towards lifting barriers. As you are aware, this group’s authority and visibility are already indisputable. The Legal Certainty Group examines issues related to cross-border legal certainty with respect to legal compatibility when securities are held via intermediaries. The Fiscal Compliance expert group (FISCO) examines cross-border differences with regard to fiscal compliance and aims to reduce the burden of fiscal compliance in this field.
In order to assess the possible impact of any regulatory intervention, a team representing all the services of the Commission is currently conducting a huge impact assessment with a view to gaining a robust instrument, before deciding whether it is appropriate to propose a directive on settlement and clearing and, if so, of course, to determine its precise content. This approach corresponds perfectly to the point of view expressed in Mrs Kauppi’s report. We think that we will be able to meet the deadline of the first half of 2006 for completing the impact assessment.
The scale of our commitment to consultation and impact assessment is also illustrated by the contact that we have had with the various rapporteurs responsible for this report. Following an initial draft report on the basis of relatively clear-cut theories, all of the parties concerned – the rapporteur, the experts advising the Commission, the members of the Committee on Economic and Monetary Affairs, the Commission secretariat and staff – put a great deal of effort into this matter. This openness to debate, dialogue and consultation on the part of the many parties involved in this matter is a model of cooperation for the work that we do together and I would like to thank the European Parliament for taking this approach."@en1
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