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09 February 2015

AFME published “Post Trade explained: The role of post-trade services in the financial sector”

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The report argues that further reform of post trade regulations is necessary to achieve integrated and efficient European capital markets.

The report provides a comprehensive overview of post trade processes, explains why they are critical for creating developed, integrated and efficient capital markets, and outlines the need for further reform. Commenting on the publication, Werner Frey, Managing Director Post Trade at AFME, said: “Although less well-known than trading activities, post trade processes are just as important for the proper functioning of modern capital markets, as they allow buyers and sellers to trade securities safely, knowing that the transaction will be cleared and settled. While important milestones have been achieved in the reform of post trade, we still don’t have an integrated low risk and low cost post trade environment in Europe.”

In AFME’s view, a synthesis of efficiency and safety and the combination of public sector authority and private sector expertise and experience is crucial to conclude the process of European post trade reform successfully. In the report, AFME argues for the following gaps to be closed:

  • Create a recovery and resolution regime for Central Counterparties (CCP) and Clearing Houses and Central Securities Depositories (CSD), which would be an important element of risk mitigation
  • Enact enforceable solutions to withholding tax procedural issues
  • Resolve outstanding legal uncertainties and create a consistent conflict-of-laws regime

Full press release

Full report


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