19 June 2018
Visit www.gemalto.com

European Central Bank to explore pan-European settlement system

07 July 2006  |  7235 views  |  0 EU keyboard

The European Central Bank is exploring the prospect of creating a harmonised securities settlement system in the euro area.

The ECB says the objective of the move would be to allow the harmonised settlement of securities transactions in euro which are settled in central bank money. The idea would be to provide a clean interface to the unified pan-European large-value payment system Target2, leading to the processing of both securities and cash settlements on a single platform through common procedures.

The move comes amid intense market debate about governance and ownership of securities clearing and settlement systems across Europe. Market participants grumble that exchange lock-in of depositories across fragmented markets leads to excessive costs for users. The issue has recently led to a purging of top-level management at LCH.Clearnet. The merged utility, whose largest shareholder is Euronext, said goodbye to both its chairman and chief executive earlier this week following a series of failed technology projects and amid regulatory probing of its governance procedures.

The ECB initiative follows a board meeting Thursday, at which it decided to explore the creation of a new service, tentatively dubbed Target2-Securities.

States the regulator: "The implementation of such a facility, which would be fully owned and operated by the Eurosystem, would allow large cost savings as a result of the high level of technical harmonisation that this facility would entail for all market participants and would represent a major step towards a single Eurosystem interface with the market."

The Eurosystem says it will now consult central securities depositories and other market participants on the envisaged facility. A final decision on the project is expected by early 2007.

Comments: (0)

Comment on this story (membership required)

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board: sign up now

Related stories

Euroclear launches single settlement engine

Euroclear launches single settlement engine

30 May 2006  |  10755 views  |  0 comments
Patchy progress for G30 clearing and settlement reforms

Patchy progress for G30 clearing and settlement reforms

24 May 2006  |  5106 views  |  0 comments
EU threatens clearing and settlement legislation

EU threatens clearing and settlement legislation

07 March 2006  |  7446 views  |  0 comments
Commission in clearing and settlement talks with top bankers

Commission in clearing and settlement talks with top bankers

22 February 2006  |  7508 views  |  0 comments
European market users call for break-up of siloed exchanges

European market users call for break-up of siloed exchanges

20 February 2006  |  9262 views  |  0 comments
McCreevy warns 'clock is ticking' on EU cross-border trading costs

McCreevy warns 'clock is ticking' on EU cross-border trading costs

13 September 2005  |  7665 views  |  0 comments
ECB prepares for Target2

ECB prepares for Target2

07 September 2005  |  9152 views  |  0 comments

Related company news

 

Related blogs

Create a blog about this story (membership required)
Visit www.aciworldwide.comVisit equensworldline.comVisit https://info.nice.com/

Who is commenting?

A Finextra member Finextra Member Commented on: BIS: Cryptocurrencies...
A Finextra member Finextra Member Commented on: BIS: Cryptocurrencies...
A Finextra member Finextra Member Commented on: Monzo launches bill tr...
A Finextra member Finextra Member Commented on: NatWest taps Open Bank...
A Finextra member Finextra Member Commented on: HSBC promises $17bn in...

Top topics

Most viewed Most shared
10,000 jobs could be lost to robots says Citi10,000 jobs could be lost to robots says C...
48750 views comments | 44 tweets | 35 linkedin
Ripple exec says DLT not ready for banks...yetRipple exec says DLT not ready for banks.....
10511 views comments | 9 tweets | 32 linkedin
UK launches £2.5bn startup initiativeUK launches £2.5bn startup initiative
9431 views comments | 30 tweets | 26 linkedin
HSBC promises $17bn investment in technologyHSBC promises $17bn investment in technolo...
8324 views comments | 8 tweets | 21 linkedin
Live: EBAday2018, day oneLive: EBAday2018, day one
8151 views comments | 6 tweets | 5 linkedin

Featured job

Find your next job