2000年-ECB欧洲央行_Consolidation_in_the_securities_settlement_industry_7页_164kb

Summary of Consolidation in the Securities Settlement Industry

Core Content

The securities settlement industry in the euro area is undergoing a significant consolidation process, driven by the introduction of the euro, legal harmonization, and technological advancements. This consolidation aims to create a more integrated, efficient, and uniform infrastructure for securities settlement across the EU.

Main Focus

The article highlights the fourth potential area of integration in the EU financial market: clearing and settlement facilities. It explores the evolution of securities settlement systems (SSSs), the role of various service providers, and the factors contributing to the current wave of integration.

Key Factors Driving Integration

• Introduction of the Euro: Eliminated currency segmentation, making European securities more interchangeable and reducing the need for cross-border intermediaries.
• European Investment Service Directive (ISD): Introduced a "single passport" policy, allowing market participants to access trading systems across the EU without facing local regulatory barriers.
• Technological Advancements: Enabled electronic book entry and remote access, reducing transaction costs and enhancing cross-border data transmission.

Types of Securities Settlement Service Providers

1. Domestic Central Securities Depositories (CSDs):

   • Provide local custody and settlement services.
   • Historically had monopolistic positions in many euro area countries.
   • Served the local market, leading to fragmentation.

2. International Central Securities Depositories (ICSDs):

   • Examples: Euroclear and Cedel.
   • Offer settlement services for internationally traded securities.
   • Have established links with domestic CSDs and provide services to large investors.

3. Custodians (Global Custodians - GCs):

   • Provide custody and settlement services for foreign investors.
   • Act as intermediaries between domestic CSDs and global investors.
   • Offer a single gateway for cross-border portfolio management.

Integration Phases

1. Vertical Integration:

   • Integration of trading, clearing, settlement, and custody functions within a single entity.
   • Often through a holding company.
   • Already well advanced in France, Germany, the Netherlands, and Austria.

2. Horizontal Integration:

   • Cross-border integration and cooperation between similar service providers.
   • Accelerated since the start of Stage Three of EMU.
   • Aims to create a unified infrastructure for all euro area markets.

Role of the Eurosystem

Objectives

1. Promote Soundness and Efficiency:

   • Ensure the smooth functioning of securities settlement systems.
   • Link to payment systems and monetary policy, as most securities transactions involve fund settlement.
   • DVP (Delivery Versus Payment) facilities reduce credit risk but increase liquidity risk, especially in RTGS systems.

2. Ensure Equal Treatment:

   • Allow all market participants in the euro area to access central bank credit using eligible collateral, regardless of location.
   • Promote a rational and efficient securities settlement infrastructure similar to that of other monetary areas like the US.

Actions Taken

• Defined standards for the use of SSSs in Eurosystem credit operations, emphasizing legal clarity, settlement in central bank money, and DVP.
• Introduced the Correspondent Central Banking Model (CCBM), which enables the use of foreign collateral for central bank credit.
• Supported the development of integrated systems by removing obstacles and promoting competition.

Current Status

• By December 1999, 21.1% of eligible collateral in Eurosystem operations was foreign.
• EUR 162.7 billion was held through the CCBM, while EUR 35.8 billion was provided via SSS links.
• The Eurosystem remains neutral and supports market-driven consolidation, avoiding policy bias.

Conclusion

The Eurosystem plays a supportive and regulatory role in the consolidation of the securities settlement industry, ensuring efficiency, safety, and equal treatment. The integration of the euro area securities markets is expected to reduce operational risks, increase liquidity, and enhance the overall competitiveness of the region's financial infrastructure.