Following the communication from the European Commission today on the future of Post Trade, Werner Frey, Manging Director of Post Trade at the Association for Financial Markets in Europe (AFME) said:
“We warmly welcome the publication of the new European Post Trade Forum (EPTF) Report - replacing the Giovannini Barriers - which identifies barriers which have not yet been dismantled, as well as new barriers and bottlenecks which need addressing in order to promote more efficient and resilient market infrastructures in the EU.
AFME, as a member of the EPTF, has been a key contributor to the drafting of the new report, which was conceived with a view to supporting the work of the European Commission in reviewing the developments in post-trading, including collateral management services.
Europe needs a clear vision for its post trading landscape and a coherent strategy for delivering this goal. We believe that the Capital Markets Union project will contribute to the dismantling of the remaining barriers to achieve a safe and efficient European post trade landscape.”
In the view of the EPTF members, the following barriers should be given the highest priority for resolution:
- EPTF Barrier 12: Inefficient withholding tax collection procedures – a barrier to efficient cross-border investments
- EPTF Barriers 8, 9, 10, 11: Legal inconsistencies and uncertainties – a barrier to a successful capital market union
- EPTF Barrier 1: Fragmented corporate actions and general meeting processes - a risk that successful barrier dismantling work is jeopardised by renewed fragmentation
- EPTF Barrier 4: Inconsistent application of asset segregation rules – providing for safety and efficiency through harmonisation
- EPTF Barrier 5: Lack of harmonisation in registration and investor identification rules and processes – an obstacle to cross-border securities investment and issuance
- EPTF Barrier 6: Complexity of post-trade reporting structure – an obstacle to making the EU an attractive investment destination
The final EPTF report can be downloaded from the European Commission website here