Code of Conduct for Clearing and Settlement
Encyclopedia
The European Code of Conduct for Clearing and Settlement (Code of Conduct) is an initiative of Europe
an securities exchanges, clearing houses
and central securities depositories
to set a uniform rules for trading, clearing, settlement and custody services for stocks. The Code of Conduct contains rules, which should enhance transparency
for customers and improve services for cross-border transactions as well as harmonise the European capital market
and revitalise the international securities traffic.
The Code of Conduct
was agreed on 31 October 2006 by all members of the Federation of European Securities Exchanges (FESE), the European Association of Central Counterparty Clearing Houses (EACH) and the European Central Securities Depositories Association (ECSDA).
The Code of Conduct is not only meant to guarantee an increased transparency of prices and services in the cross-border securities business, but is also supposed to stimulate the international securities traffic. Due to technical interfaces built to ensure the interoperability
of diverse platforms, segregated accounting as well as newly structured services the market participants will be enabled to order Clearing, Settlement and Safekeeping at different institutions.
The Code contains rules, which should lead to the improvement of price transparency, to facilitate and open access to cross-border services (trade, clearing and settlement) and finally to separate services relating to trade, clearing settlement, and custody services and to enable the separate bill
ing of these services.
Europe
Europe is, by convention, one of the world's seven continents. Comprising the westernmost peninsula of Eurasia, Europe is generally 'divided' from Asia to its east by the watershed divides of the Ural and Caucasus Mountains, the Ural River, the Caspian and Black Seas, and the waterways connecting...
an securities exchanges, clearing houses
Clearing house (finance)
A clearing house is a financial institution that provides clearing and settlement services for financial and commodities derivatives and securities transactions...
and central securities depositories
Central Securities Depository
A Central Securities Depository is an organization holding securities either in certificated or uncertificated form, to enable book entry transfer of securities. In some cases these organizations also carry out centralized comparison, and transaction processing such as clearing and settlement of...
to set a uniform rules for trading, clearing, settlement and custody services for stocks. The Code of Conduct contains rules, which should enhance transparency
Transparency (market)
In economics, a market is transparent if much is known by many about:* What products, services or capital assets are available.* What price.* Where....
for customers and improve services for cross-border transactions as well as harmonise the European capital market
Capital market
A capital market is a market for securities , where business enterprises and governments can raise long-term funds. It is defined as a market in which money is provided for periods longer than a year, as the raising of short-term funds takes place on other markets...
and revitalise the international securities traffic.
The Code of Conduct
Code of Conduct
A code of conduct is a set of rules outlining the responsibilities of or proper practices for an individual, party or organization. Related concepts include ethical codes and honor codes....
was agreed on 31 October 2006 by all members of the Federation of European Securities Exchanges (FESE), the European Association of Central Counterparty Clearing Houses (EACH) and the European Central Securities Depositories Association (ECSDA).
The Code of Conduct is not only meant to guarantee an increased transparency of prices and services in the cross-border securities business, but is also supposed to stimulate the international securities traffic. Due to technical interfaces built to ensure the interoperability
Interoperability
Interoperability is a property referring to the ability of diverse systems and organizations to work together . The term is often used in a technical systems engineering sense, or alternatively in a broad sense, taking into account social, political, and organizational factors that impact system to...
of diverse platforms, segregated accounting as well as newly structured services the market participants will be enabled to order Clearing, Settlement and Safekeeping at different institutions.
The Code contains rules, which should lead to the improvement of price transparency, to facilitate and open access to cross-border services (trade, clearing and settlement) and finally to separate services relating to trade, clearing settlement, and custody services and to enable the separate bill
Bill (payment)
A bill or invoice is a document requesting payment for an order previously supplied. Presentation of a bill is common practice on the part of credit card companies, utilities, and other service providers...
ing of these services.