Leading securities firms in Europe have strongly opposed Deutsche
Börse's decision to reject Euroclear's bid for the German
exchange's stake in Clearstream, the international central
securities depository (ICSD) that provides clearing and settlement
for bonds and equities in Europe. Many securities firms saw a
merger of Euroclear and Clearstream as a highly desirable move
towards creating the infrastructure of a true European securities
market. For securities dealers, operating in a series of national
markets has been costly and inefficient because of a lack of
integration of clearing and settlement systems.
What's worse, Deutsche Börse now intends to assert 100%
control over Clearstream.
The affair highlights a conflict between those pursuing a vision
of an integrated European securities market and newly floated
European exchanges set on delivering value to shareholders. In the
first camp the European Securities Forum (ESF) is prominent.
Deutsche Börse is an example of an institution in the second...
