The latest meeting of the EU CESAME group on clearing and settlement (11 June 2007) updated the progress on removing Barrier 13 (absence of EU-wide framework of law) and Barrier 15 (conflicts of laws).
The main risk from Barrier 13 is that the law (including procedures for the creation, perfection and enforcement of security) has not kept up with market developments, especially in dealing with cross border issues. The legal certainty group has already given its outline advice to the EC (see Advice of the Legal Certainty Group, 11 August 2006) on how to overcome this Barrier. At the CESAME group’s June 2007 meeting, a new timeline was confirmed in which the legal certainty group will now provide an interim report in November 2007 and full advice (potentially with draft legislation) in 2008.
In respect of Barrier 15, the CESAME group and the legal certainty group acknowledge that both member states and industry participants are divided as to whether the EU should accede to the Hague Convention on Intermediated Securities. There was no clear conclusion from the CESAME group as to how to progress this uncertainty.
View Latest CESAME report includes progress on legal Giovannini barriers, (PDF 77.1KB), June 2007
ViewAdvice of the Legal Certainty Group, (37.3kb),11 August 2006