CSE participates in EU Advisory Committee for new clearing and settlement system

The European Union launched a new single system for the clearing and settlement of transactions and the CSE has been called to participate as a full member of the competent Advisory Authority that will promote the venture.

This development is a great honour for the CSE, since it confirms the high level of adequacy of the Central Depository, as well as its reputation in infrastructure, technology, clearing, settlement and central registry procedures.

Specifically, the European Central Bank announced a new project under the name T2S and the depositories of all EU member states will introduce a single European establishment for the clearing and settlement of transactions.

The CSE, which is responsible for the Central Registry in Cyprus, has been called to participate as a full member in the Advisory Committee and proceeds with its participation in the share structure of Link-Up Markets.

The EU aims to introduce by 2013 a European system of clearing and settlement of transactions, a platform for a cross-border and domestic clearing of securities in Central Bank Money. This will facilitate further the conduct of cross-border transactions with a lower cost, offering full transparency in billing.

Apart from the depositories of other EU member states, the Advisory Committee for T2S includes high ranking representatives of the European Central Bank and the Central Banks of the EU member states.

With reference to the Link-Up Markets, which includes 7 depositories of Europe (Germany, Spain, Austria, Greece, Switzerland, Denmark and Norway), it is noted that the aim is to launch a European platform on a unified basis that will contribute to the conduct of cross-border transactions.

With the enforcement of the project, the depositories and the local users will be able to provide new services of added value and to create economies of scale, full credibility of the existing infrastructures, support of the harmonization of the depositories that participate and development, maintenance and direct cross-border access via the infrastructures of each local depository.

It is obvious that the Cyprus Stock Exchange plans and enforces specific strategies so as to be in line with the developments.

The CSE aims to maintain the competitiveness, flexibility and adjustability required in the new environment.