Clearing and settlement code of conduct

The EU’s stock exchanges will sign up to a code of conduct on clearing and settlement on Tuesday (7 November). The code, which the European Commission hopes will remove the need for legislation, aims to encourage increased competition in the sector. By the end of June next year, clearing and settlement systems will have to be interoperable, reducing costs and making the market more fluid. Exchanges such as the Frankfurt-based Deutsche Börse, which combine trading, clearing and settlement services, will have to break up their vertically integrated structures by the end of next year. Exchanges will have to adopt more transparent pricing policies, detailing individual costs for services rather than charging lump sums.

The EU’s stock exchanges will sign up to a code of conduct on clearing and settlement on Tuesday (7 November). The code, which the European Commission hopes will remove the need for legislation, aims to encourage increased competition in the sector. By the end of June next year, clearing and settlement systems will have to be interoperable, reducing costs and making the market more fluid. Exchanges such as the Frankfurt-based Deutsche Börse, which combine trading, clearing and settlement services, will have to break up their vertically integrated structures by the end of next year. Exchanges will have to adopt more transparent pricing policies, detailing individual costs for services rather than charging lump sums.