New Financial Regulation

12^th March 2012

The European Commission's DG Internal Market has published a draft regulation that aims to regulate the securities settlement system. Indeed this sector is tightly controlled nationally but not from an international point of view. This document suggests a remedy to this in order to facilitate securities settlement Europe wide, by re-establishing confidence on five points: the length of the settlement cycle, problems linked to paper securities, the lack of regulation, the fragility of operators and notably their exposure to banking aleas and finally the lack of legislation on agreements between central securities depositories.

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