Launched in 1999 by about two dozen of the world's largest
financial firms, the European Securities Forum (ESF), then known as
the European Securities Industry Users Group, set out to broker a
merger of international depositories Euroclear and Clearstream as a
way to reduce Europe's post-trade processing costs.
The merger didn't happen--Deutsche Borse purchased Clearstream
in 2001--and those costs are still a concern. The ESF shifted its
focus to establishing a blueprint for a single European securities
clearinghouse, which also hasn't come to pass. The London Clearing
House and France's Clearnet did merge, but Deutsche Borse's
derivatives affiliate Eurex declined to join the union and several
other clearinghouses have popped up since then. |
