20 June 2018
Visit www.gemalto.com

G30 calls for EU clearing and settlement reform

23 January 2003  |  4213 views  |  0 G30 calls for EU clearing and settlement reform

Industry think tank the Group of 30 is calling on European clearing and settlement agencies to reform their working practices and cut costs for securities market participants investing across borders.

The group, which includes high-level representatives from private and central banks, has issued a blueprint for reforming global clearing and settlement of bonds and stocks over five to seven years, in line with software and hardware upgrade cycles. It is calling for increased scrutiny of industry utilities which fail to improve working practices.

The 20 recommendations itemised in the report centre on improvements in interoperability, risk management and governance. The group calls for all market participants to adopt ISO 15022 as a global messaging standard with XML applied as a descriptive layer.

The G30 says that consolidation among the 20 or so settlement systems in Europe is essential for market reform. Market fragmentation is identified as a critical source of inefficiency, with cross-border clearing and settlement costs eight times higher than for domestic stock movements.

The G30 argues that financial market participants pay $10 billion a year globally on clearing and settlement, while providers of such services incur annual costs of only $2.5 billion.

The publication of the report comes ahead of a European Commission investigation into EU settlement, focusing on the ownership and pricing policies of clearing and settlement agencies.

The London Stock Exchange has welcomed the G30's intervention.

Says an LSE spokesman: "Many of the G30's global recommendations in this area are badly needed in Europe, where there is huge scope for improving the efficiency, and reducing the industry cost, of the presently fragmented infrastructure."

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

London Stock Exchange and OM in OTC derivatives venture

London Stock Exchange and OM in OTC derivatives venture

09 December 2002  |  8204 views  |  0 comments
London Clearing House to reduce EquityClear tariff

London Clearing House to reduce EquityClear tariff

05 December 2002  |  3084 views  |  0 comments
London Clearing House and Clearnet on course for merger breakthrough

London Clearing House and Clearnet on course for merger breakthrough

04 December 2002  |  6052 views  |  0 comments

Related blogs

Create a blog about this story (membership required)
Visit http://go.jumio.com/finextraAdVisit www.worldwealthreport.com

Top topics

Most viewed Most shared
GPS raises £44 million to fund international growthGPS raises £44 million to fund intern...
18109 views comments | 6 tweets | 8 linkedin
Ripple exec says DLT not ready for banks...yetRipple exec says DLT not ready for banks.....
11656 views comments | 11 tweets | 33 linkedin
DBS to use robot to screen applicants for human jobsDBS to use robot to screen applicants for...
8461 views comments | 3 tweets | 6 linkedin
Robots save Nordea from GDPR processing nightmareRobots save Nordea from GDPR processing ni...
8362 views comments | 10 tweets | 17 linkedin
Alior to launch pan-European digital bank with solarisBank and RaisinAlior to launch pan-European digital bank...
8024 views comments | 10 tweets | 16 linkedin

Featured job

Find your next job