These reports are available on each of the ECSA websites. Other corporate events will be studied and new sets of recommendations will follow. Phase three will focus on stock distribution and the publication of a set of recommendations on this topic is scheduled for Q4-2005)

The Giovannini Group, acting as advisory body to the European Commission, has identified the various market practice, legal and tax barriers responsible for inefficiencies and preventing the achievement of an integrated post-trading
environment for the EU securities market. A total of 15 barriers were highlighted. The European Credit Sector Associations (ECSAs) and the European Central Securities Depositories Association (ECSDA) have been made responsible for coordinating the removal of Barrier 3.

Barrier 3 applies to the differences existing among Member States in the rules governing corporate actions, beneficial ownership and custody. The Giovannini Group advocates harmonization by the market of the various national rules and calls for information requirements and deadlines for the removal of the barrier.

The ECSAs are pulling the weight of the private banking sector into a Corporate Action Task Force (CATF) to identify the individual obstacles preventing efficient cross-border corporate action processing and to make proposals as to their removal.

In a three-stage approach to the removal of obstacles; they will coordinate and promote the implementation of these recommendations at national level, through their member associations and banks; finally, they will monitor progress in the implementation of the measures at national level by means of annual reviews.

The ECSAs are now are also embarking on the monitoring stage of their action and an assessment on country specific situations against the published set of recommendations on cash dividends and interest payments and maturity redemption is scheduled for the summer of 2005 and a report on the implementation plan for the recommendations is due end 2005, early 2006.