|Istvan FARKAS, Chairman of the Hungarian Financial Supervisory Authority|
Between 2002 and 2005, a joint CESR/ESCB working group developed Standards for Clearing and Settlement systems in Europe. Following other emerging initiatives in the area of post-trading, activities of the group were disrupted after that period. To view the work of this group, please go to the Clearing and Settlement Group.
In 2007, the CESR Members decided to establish a group of CESR experts only, the Post-Trading Expert Group (PTEG). This group will focus on post-trading activities in the EU, where relevant for CESR and its members. The chairman of the PTEG is Istvan Farkas, Chairman of the Hungarian HFSA. Wim Moeliker of the CESR Secretariat acts as the rapporteur of the group.
The PTEG, given the responsibilities of national securities regulators for post-trading activities in the respective Member-States, will focus on a number of regulatory initiatives going on in the area of post-trading, with the objective to enhance a level-playing-field and the safety and soundness of post-trading activities within the EU. The political support for these regulatory initiatives was reflected in the conclusions of the EU Council on Clearing and Settlement of 9 October 2007. Prior to this, CESR had decided to create a platform to follow these initiatives more closely, establish a place to share supervisory experiences and, where appropriate, to respond to these initiatives.
The first major point on the agenda of the PTEG is the Code of Conduct for Clearing and Settlement, in particular with regard to the envisaged role of regulators in this Code. The Code of Conduct is developed and signed by the providers of infrastructures for Trading, Clearing and Settlement, i.e. Stock Exchanges, Central Clearing Parties and Central Securities Depositories within and outside the EU-area. CESR is a member of the Monitoring Group, the group established by the European Commission with the mandate to review the compliance with the Code by the signatories.
The second important initiative followed by the PTEG on behalf of CESR is the ESCB-project TARGET-2-for-Securities (T2S). This long-term project aims to create a single and central platform for the cross-border and domestic settlement of Euro-denominated securities against central bank money, run by the Euro-system. CESR is also an observer in the T2S Advisory Group, an advisory body to the decision-making bodies of the ECB in the structure for the T2S-project, and remains in dialogue with the ECB on this project in various other ways.