2005年-ECB欧洲央行_The_ESCB-CESR_standards_for_securities_clearing_and_settlement_in_the_European_Union_12页_163kb

ESCB-CESR Standards for Securities Clearing and Settlement in the European Union

Core Content

The ESCB-CESR standards are designed to enhance the safety, efficiency, and stability of securities clearing and settlement infrastructure within the European Union. These standards were developed in 2004 as a joint effort between the European System of Central Banks (ESCB) and the Committee of European Securities Regulators (CESR), adapting the CPSS-IOSCO Recommendations for securities settlement systems to the EU context.

Main Objectives

• To mitigate systemic risk in securities settlement by defining risk management measures.
• To ensure smooth and efficient functioning of securities settlement systems, which are critical for financial stability.
• To provide a common tool for central banks, securities regulators, and banking supervisors to regulate and supervise clearing and settlement activities.
• To align with the CPSS-IOSCO Recommendations, while addressing specific EU legal and market characteristics.

Key Points

1. Securities Settlement Overview

• Settlement involves the exchange of securities for cash, and is often netted in some markets.
• Central Securities Depositories (CSDs) and International CSDs (ICSDs) are central to this process.
• Custodians hold securities on behalf of investors and are connected to CSDs.
• ICSDs are a hybrid model, combining features of CSDs and custodian banks.
• ICSDs account for 40% of the total value settled by CSDs/ICSDs in the euro area, with 80% of transactions in euros.

2. Systemic Risk in Settlement

• Systemic risk arises from interconnectedness among institutions and market participants.
• It can lead to chain reactions of settlement failures.
• Public sector involvement is crucial in defining risk management measures to reduce this risk.

3. Role of Competent Authorities

• Central banks (e.g., the Eurosystem) and securities regulators (e.g., CESR) have a shared interest in the stability of securities settlement.
• The Eurosystem relies heavily on securities as collateral, and the failure of CSDs or ICSDs could impact its monetary policy and payment systems like TARGET.

4. Nature of ESCB-CESR Standards

• The standards are not binding EU law and are intended to complement, not pre-empt, future legislative actions.
• They are based on a risk-based functional approach, addressing all relevant functions of securities settlement.
• The focus is primarily on settlement rather than clearing, as clearing is handled separately by CPSS-IOSCO.

5. Application of the Standards

• The standards are applied uniformly across the EU to ensure a level playing field.
• They provide guidance for regulators and supervisors to align their practices with international norms.
• National authorities may impose additional measures if necessary, but the ESCB-CESR standards aim to minimise such actions.

Key Risks Addressed

Legal Risk

• Ensures clear, public, and enforceable rights and obligations.
• Promotes harmonisation of legal rules across different SSSs.
• Emphasises transparency and designated systems under the Settlement Finality Directive.

Credit Risk

• Addresses replacement cost risk, principal risk, and settlement bank failure.
• Encourages securities lending to reduce settlement failures.
• Requires collateralisation of credit exposures, with limits and security measures.
• DVP (Delivery versus Payment) is a core mechanism to eliminate principal risk.
• CSDs are advised to avoid credit risk due to their notary function and asset safeguarding role.

Liquidity Risk

• Focuses on intraday settlement finality and the timely transfer of funds.
• Recommends real-time or multiple batch processing for settlement finality.
• Ensures liquidity buffers and efficient cash payment mechanisms.

Organisational Aspects

• The standards were developed by a joint working group of ESCB and CESR.
• The group included 32 institutions at the start, increasing to over 50 after EU enlargement.
• The standards were the first joint project between central banks and securities regulators in the EU.

Open Issues and Follow-Up

• The standards aim to reduce settlement failures and enhance financial integration.
• They address specific EU market features and legal frameworks.
• Follow-up work is ongoing to refine and implement these standards across the EU.

Conclusion

The ESCB-CESR standards are a key regulatory tool for promoting financial stability and market efficiency in the EU. By addressing legal, credit, liquidity, custody, and operational risks, they support the safe and efficient operation of securities settlement systems, while ensuring alignment with international best practices.