AFME has made available a series of papers regarding legal and operational issues of post-trade infrastructure:

  • Key proposals for effective implementation of securities law legislation, where it makes recommendations as to how the forthcoming harmonisation of securities law at EU level should approach the issues of legal segregation, differing holding structures and transfer of legal title.
  • Response to Treasury’s questions on re-hypothecation and other topics of securities law legislation, where it comments on the lessons learnt from recent broker-dealer failures, re-hypothecation caps, segregation throughout the whole chain of custody and UK trust law. AFME also develops here its “operational approach” to EU harmonisation, which would strike a pragmatic balance between achieving investor protection and respecting varying national legal concepts.
  • Position on separating, in different legal entities, Central Securities Depositories’ (CSDs) core services from ancillary banking services. AFME supports this measure as the gain of safety will outweigh any costs.
  • Paper on Settlement internalisation. This can take place where counterparties use the same intermediary, at either local or global level. The paper considers the consequences of the Commission’s proposals for CSDs on settlement internalisation.

(Source: AFME Post-Trade Division and Settlement Internaliser Considerations)