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What’s the problem with Clearing and Settlement then?

In the context of Clearing and Settlement, we have an
issue.

The issue is one of transparency, access, interoperability and
accounting.

The European Commission, Alberto Giovannini, the Code of
Conduct and the Monitoring Group have all tried to change this, but it is not
changing fast enough.

What’s the problem?

The problem is
that

  • you cannot compare apples-with-apples;
  • clearing and settlement involves many constituencies that are fragmented and
    protecting their turf;
  • settlement is dictated often by national rules of company law and taxation
    systems; and
  • there’s no incentive to change, not even the threat of punitive measures by
    the European Commission, because CCP’s and CSD’s have protection from both
    governmental and historical structures in many instances.

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About Chris M Skinner

Chris M Skinner
Chris Skinner is best known as an independent commentator on the financial markets through his blog, the Finanser.com, as author of the bestselling book Digital Bank, and Chair of the European networking forum the Financial Services Club. He has been voted one of the most influential people in banking by The Financial Brand (as well as one of the best blogs), a FinTech Titan (Next Bank), one of the Fintech Leaders you need to follow (City AM, Deluxe and Jax Finance), as well as one of the Top 40 most influential people in financial technology by the Wall Street Journal’s Financial News. To learn more click here...

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