Cross-Border Securities Clearing and Settlement Infrastructure in the European Union as a Prerequisite to

The significant progress on the unification of cross-border securities trading infrastructure within the European Union (EU) has been paving the road to an integrated EU financial market. However, more dynamic changes towards integration are happening a level below, namely at the clearing and settlement arrangements. Financial liberalization, the information technologies development, progress in the common regulatory framework across the European Union and the introduction of the euro are examples of the several driving forces which have also been influencing in this process. The importance of an efficient securities clearing and settlement system lies on the safer transfer of ownership of assets against payment. Such a system must be developed in a way to minimize the risks involved on securities transactions, and it must still offer lower costs, which do not hinder the intention to acquire or dispose securities. Financial integration in Europe is still far from being achieved and it is not a common currency alone that may change this scenario. In general, the arrangements between actors in the trading, clearing and settlement systems within any countr