The Governing Council of the European Central Bank (ECB) and the Committee of European Securities Regulators (CESR) have entered an agreement to conduct joint work on issues of common interest for securities clearing and settlement.
The two bodies have approved a framework for co-operation on securities clearing and settlement systems, and have set out a proceedure to conduct the joint work.
A Working Group, composed of representatives of the ECB and the 15 EU national central banks and representatives of the CESR, is scheduled to start its work in the near future. Jean-Michel Godeffroy, director general of the ECB, and Eddy Wymeersch, chairman of the Belgian Commission Bancaire et Financière, will co-chair the Group.
The Group's work will aim to establish standards and/or recommendations for securities settlement systems and for European central counterparties in order to create a level playing-field for providers of securities clearing and settlement services. The standards will also aim to overcome the significant heterogeneity within the legislative frameworks of European countries.
The ECB and CESR will use recommendations from the Joint Task Force of the Committee on Payment and Settlement Systems (CPSS) and the International Organisation of Securities Commissions (Iosco) as a starting point for assessing the need to adopt more stingent recommendations at the EU level.