European stock exchanges have reached a trading deal which introduces more price transparency and competition into clearing and settling trades in shares.
The voluntary code of conduct allows investors the freedom to trade cash securities and settle trades anywhere in Europe.
'The ultimate aim is to offer market participants the freedom to choose their preferred provider of services separately at each layer of the transaction chain (trading, clearing and settlement) and to maker the concept of 'cross-border' redundant for transactions between EU member states,' the code says.
Speaking today Commissioner for Internal Market Charlie McCreevy said that working on the clearing and settlement of securities transactions lies at the heart of the Commission's efforts to promote an integrated EU financial market.
'The European Commission has welcomed the clearing and settlement industry's new Code of Conduct, and considers it an important first step towards an integrated and efficient post-trading market in the EU.
The measures detailed in the code aim at enhancing transparency and increasing competition in the post-trading sector', he said.
He added that the signatories of the code will have to gradually implement these measures, all of which will need to be in place by 1 January 2008.
