AFME calls for further progress in European post-trade reform
23 May 2018 London
Image: Shutterstock
AFME鈥檚 post-trade division has published a new white paper setting out a vision for a future post-trade system in Europe.
The paper outlines AFME鈥檚 vision for integrated, safe, and efficient post-trade in Europe.
In addition to this, the paper explores impending progress in European post trade reform as well as the key objectives for public authorities and the industry in the paper, entitled 鈥淎 Roadmap for Integrated, Safe and Efficient Post Trade Services in Europe.鈥�
To achieve the vision of low-risk and low-cost post trading in Europe, the paper calls for a number of strategies including continuing a close and institutionalised cooperation between the public and the private sector.
It also suggested intensified dialogue with European and national public authorities in a bespoke and targeted manner, and leveraging opportunities created by new technology.
Key areas of focus include: a sound legal basis for cross border holdings in book entry securities, an efficient method of reclaiming withholding taxes, and ensuring open access and interoperability for European central counterparties.
Stephen Burton, managing director of post-trade, AFME, said: 鈥淓uropean post trade reform must go further if we are to build larger and more diverse capital markets in Europe. While the solutions put forward to date are necessary, they have not gone far enough in addressing the barriers to efficient post trade.鈥�
He added: 鈥淚n order to make progress towards an integrated, low-risk and low-cost post-trade eco-system in Europe, European and national authorities should prioritise reform. The overarching goals of post trade reform are well-established, the mandate and the foundations have been clearly set, now it鈥檚 time for action.鈥�
The paper outlines AFME鈥檚 vision for integrated, safe, and efficient post-trade in Europe.
In addition to this, the paper explores impending progress in European post trade reform as well as the key objectives for public authorities and the industry in the paper, entitled 鈥淎 Roadmap for Integrated, Safe and Efficient Post Trade Services in Europe.鈥�
To achieve the vision of low-risk and low-cost post trading in Europe, the paper calls for a number of strategies including continuing a close and institutionalised cooperation between the public and the private sector.
It also suggested intensified dialogue with European and national public authorities in a bespoke and targeted manner, and leveraging opportunities created by new technology.
Key areas of focus include: a sound legal basis for cross border holdings in book entry securities, an efficient method of reclaiming withholding taxes, and ensuring open access and interoperability for European central counterparties.
Stephen Burton, managing director of post-trade, AFME, said: 鈥淓uropean post trade reform must go further if we are to build larger and more diverse capital markets in Europe. While the solutions put forward to date are necessary, they have not gone far enough in addressing the barriers to efficient post trade.鈥�
He added: 鈥淚n order to make progress towards an integrated, low-risk and low-cost post-trade eco-system in Europe, European and national authorities should prioritise reform. The overarching goals of post trade reform are well-established, the mandate and the foundations have been clearly set, now it鈥檚 time for action.鈥�
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