Investors and financial institutions in Europe have long been
griping about the high costs of cross-border clearing and
settlement. Now the European Union authorities are joining the
chorus--and they have the power to make a difference.
Some progress is evident toward removing the 15 barriers to a
more efficient securities processing infrastructure as identified
by the European Commission-sponsored Giovannini Group, but that has
apparently not been enough to satisfy the EC, which is threatening
legislation by the summer unless the securities industry convinces
it otherwise. "The present situation is untenable. Changes are
going to have to be made," said competition and internal markets
commissioners Neelie Kroes and Charlie McCreevy last month. |
