Federation of European Securities Exchanges (FESE), European Association of Central Counterparty Clearing Houses (EACH), European Central Securities Depositories Association (ECSDA)

Summary of the initiative

Name
Federation of European Securities Exchanges (FESE), European Association of Central Counterparty Clearing Houses (EACH), European Central Securities Depositories Association (ECSDA)
Objective(s)
It is the common objective of the organisations, signing this code of conduct, to establish a strong European capital market and to allow the investors the choice to trade any European security - whether it is a domestic or a foreign security - within a consistent, coherent and efficient European framework.

Description of the Initiative

Obsolete case
    Sector

    Sector

    Contact Point - Commission
    FISMA C1

    Self/Co-Regulation Basic Act

    PRIVATE ACT
    Year
    2006
    Title of Act
    European Code of Conduct for clearing and settlement
    NON-LEGISLATIVE ACT
    Year
    2004
    Title of Act
    Communication from the Commission to the Council and the European Parliament - Clearing and Settlement in the European Union - The way forward, COM(2004)312 final and Communication from the Commission to the Council and the European Parliament - Clearing and settlement in the European Union - Main policy issues and future challenges, COM(2002)257 final.

    Geographical Coverage

    Global coverage
    Participating Countries
    Austria
    Other countries
    Bosnia & Herzegovina, Montenegro and Serbia.

    Description

    Problems that lead to the introduction of Self/Co-Regulation and the adoption of the Founding Act
    Improved clearing and settlement arrangements are essential to an efficient and integrated securities market. Commissioner McCreevy announced that he favours an industry-led approach to a more efficient and integrated post-trading market in the EU, as opposed to proposing a Directive and called upon the industry to provide a suitable solution.
    Target Group(s)
    European clearing houses and stock exchanges.
    Type of Instrument(s)
    Code of Conduct.
    Type of Financing
    -
    Type of Monitoring
    Conduct an initial survey of compliance capacity of future regulateesConduct regular visits and spot checksInitiate complaints proceduresMaintain database of those bounded by the normsProduce regular reportsReceive complaints and verify if norms were breached or notReflexive dialogue with the - stakeholdersOther
    European Commissionyes
    National public authority
    International public authority
    Private regulator (code owner)
    Private independent party with a mandate (e.g. auditors)
    Self-appointed private parties (e.g. NGOs)
    Succinct description of the type of Monitoring
    European Commission aims to establish an ad-hoc committee, comprising Competition DG (COMP) and Economic and Financial Affairs DG (ECFIN) and other public sector interlocutors to liaise with the auditing process. The Organisations are committed to ensure adequate monitoring of compliance with the Code and are ready to engage in further discussions on the exact mission statement of this ad-hoc Committee, on the access to confidential data and on how the Committee will interact with national authorities and regulators, CESAME and market participants.
    Type of Enforcement
    Faming, shaming and blamingJudicial sanctionsMembership suspension/exclusionPrivate finesOther
    Private Regulator
    Private independent party with a mandate (e.g. auditors)
    Court system
    Alternative dispute resolution (ADR) / Online dispute resolution (ODR)
    Succinct description of the type of Enforcement
    -

    Results of Commission Monitoring

    Link / Reference of Evaluation
    -

    Downloads

    SMO self- and co-regulation database - private code 76