European Commission explores the evolution of post-trade services
On Aug. 22 the European Commission opened a public consultation on post-trade services in financial markets, including clearing, settlement and collateral management. One part of the consultation asks for feedback on the impact of market trends and new technologies such as increased automation and distributed ledger technology. The other part seeks feedback on new or existing barriers to post-trade market infrastructure.
The Commission said responses to the consultation will feed into future legislative reviews and a communication scheduled for release at the end of the year. The Commission also unveiled a report prepared by the European Post-Trade Forum assessing the evolution of the EU post-trade landscape and the progress in removing barriers. The report covers such issues as the lack of convergence in information messaging standards, the inconsistent application of asset segregation rules, the complexity of post-trading reporting structure, and legal uncertainty with respect to default management procedures. The EPTF is an expert group that includes trade associations for clearinghouses, exchanges and banks.
