AFME responds to European Commission consultation on post trade in a CMU

15 November 2017

AFME said that this important consultation will help the Commission determine the needs and priorities in European post-trade reform.

Werner Frey, Managing Director, Post Trade at AFME, said: “The European Post-Trade Forum (EPTF) Report and this consultation are an important milestone in much-needed European post-trade reform. As a next step, we are very much in favour of dismantling the narrowly defined EPTF Barriers with a view to promoting the global competitiveness of European capital markets. At the same time, a strategic plan for a comprehensive European post-trade reform should be developed.”

AFME’s consultation response finds that there are two interrelated parallel processes required to successfully promote European post-trade reform and a well-functioning CMU:

With respect to dismantling the EPTF Barriers, AFME:

With respect to the development and implementation of a longer-term strategy for comprehensive European post-trade reform, AFME:

- the definition and the objectives of a comprehensive European post-trade reform;
- an assessment of the likely impact of technological developments, based on an analysis to be performed of the conditions precedent, such as the legal and regulatory framework for such technological developments;
- an assessment of the degree to which the successful dismantling of the EPTF Barriers achieves the defined objectives;
- an analysis in regard of the timeliness of current post-trade processes including their rationale;
- high level proposals for achieving the defined objectives.

AFME finds that the following areas in particular require more in-depth work:

Full response paper

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