Bringing a new dynamic to Europe's shifting trading landscape, seven central securities depositories (CSDs) last week announced a plan to make cross-border settlement more efficient. Days earlier, Depository Trust & Clearing Corp. (DTCC) said it had made progress toward setting up a clearing shop on the other side of the Atlantic.
Because the national European exchanges use either in-house or third-party clearance and settlement providers, cross-border trading is costly. Exchange members must connect to multiple clearing and settlement units--compared to one equity settlement house, DTCC, in the U.S.--or pay agent banks that already have links.
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