The European Commission says it has received wide-spread support for its plans to improve pan-European securities clearing and settlement, which includes the possible introduction of legislation.
The Commission said last year it was proposing a framework Directive on clearing and settlement with the aim of removing regulatory and competitive impediments to improved efficiency and lower costs in cross border securities trading.
The Commission says it received 82 responses to the consultation from public authorities - including supervisors and central banks - and market operators. The majority (47) supported proposals to consider a Directive, although respondents had diverging views on its exact contents. Just six respondents were explicitly against a Directive.
The Commission is now preparing a regulatory impact assessment for the possible introduction of legislation.
But Charlie McCreevy, single market commissioner, says the Commission won't be rushing out legislation: "Any proposal will first be tested by a fully-fledged, comprehensive impact assessment. Any decision on the content, nature and scope of a directive will depend on the evidence produced by that assessment and on the extent to which rigorous analysis shows that measures envisaged will materially improve liquidity, reduce costs, and enhance safety in clearing and settlement."
There was also strong support for the establishment of three expert groups to analyse and debate the issue. A clearing and settlement advisory and monitoring expert (CESAME) group and a legal certainty group have already been established. A fiscal compliance group will be set up in the next couple of months.