Integration of the Securities Market Infrastructure in the European Union

This paper examines the impact of ongoing cross-border integration of securities market infrastructure in the European Union. In particular, it analyzes the regulatory framework that has evolved to deal with the risks associated with cross-border clearing and settlement and concludes that, due to institutionalized deficiencies, the current cross-border regulatory framework may not be adequate or effective in addressing and preventing a real cross-border crisis. The paper proposes a two-tier regulatory framework for securities infrastructure in Europe entailing the creation of a centralized "federal" European regulatory framework for regional systems, in addition to the current national regulatory framework for domestic systems.European Union;Infrastructure;Payment systems;Risk management;settlement systems, securities settlement, securities clearing, securities settlement systems, securities market, securities markets, market infrastructure, securities regulators, securities transactions, securities transaction, stock exchanges, capital markets, financial intermediaries, domestic securities, market participants, payment system, stock exchange, securities processing, clearinghouse, border transactions, securities commissions, risk management procedures, banking supervisors, subsidiaries, securities regulation, financial regulations, capital increases, settlement facilities, securities holding, securities depository, supervisory framework, legal entities, stock splits, prudential supervision, international central securities depository, due consideration, government bonds, central securities depository