Effective 1 November 2009, this website is no longer being updated. Please see AFME's new website at www.afme.eu. For content specific to the ESSF, please see the page for AFME's new Post-Trading Division.

Strategic Approach

The changes in the environment of ESSF since its inception require a reinforced and at the same time refined, more pragmatic and practical strategic approach:

ESSF supports efforts to increase the efficiency and effectiveness of domestic clearing and settlement processes by way of harmonisation, integration and consolidation as a basis for achieving the objectives of cost and risk reduction at the pan-European level.

ESSF focuses on a step-by-step approach that provides for the required increase of efficiency and effectiveness of cross-border transactions; key parameters for respective assessments are:

  • reduction of costs and risks to become comparable with domestic levels and significant reduction of the internal costs of market participants – both being essential ingredients of Europe becoming the most efficient capital market;
  • implementation of cross-border solutions to warrant tangible results within a short period of time without jeopardizing the efficiency of domestic processes;
  • pricing transparency, particularly where exchanges own clearing and settlement organisations;
  • open access and customer choice;
  • post-trade infrastructure for cross-border equity transactions to be prioritised as currently least secure and cost-effective;
  • commitment to open architecture and open structure to allow expansion of covered markets and instruments as well as joint development of next generation systems.

To increase ESSF's influence its management reinforces the dialogue with its members, with the securities infrastructure institutions in Europe as well as with regulatory and political bodies particularly at EU level to foster the important dimension of legal, regulatory and fiscal harmonisation as a pre-requisite for a truly integrated pan-European capital market.

As an agent of change ESSF plays a key role in implementing the changes in practice that have been analysed and determined at high level by The Group of Thirty and The Giovannini Group. To this end and to avoid any duplication of effort ESSF, representing the market users’ views and position, cooperates with the relevant private sector organisations, particularly ECSDA as the representative of the market infrastructure, as well as with public sector bodies, particularly at EU level.