In October 2001 the Committee of European Securities Regulators and the Governing Council of the European Central Bank agreed to conduct joint work on issues of common interest in the field of securities clearing and settlement systems. The Expert Group began from the basis established by the 2001 CPSS/IOSCO “Recommendations for securities settlement systems” which were developed for application internationally. These were felt to serve as a solid foundation on which to build further and to adapt to provide for a robust approach tailored to European needs. The European Standards, when adopted, will contribute to creating a level playing-field for the providers of securities clearing and settlement services and to overcoming the significant heterogeneity within the legislative frameworks of European countries. The standards will also continue to ensure Europe’s compliance with the international standards established in the CPSS/IOSCO recommendations.

In order to fulfil this task, a Joint Working Group was established, composed of representatives of the ECB and the 15 EU national central banks (together forming the ESCB) and representatives of CESR. In order to reflect the co-operation between CESR and the ESCB, the Group has a co-chairmanship with Eddy Wymeersch, President of the Belgian Commission Bancaire, Financière et des Assurances chairing on behalf of CESR, and Jean-Michel Godeffroy, Director General of the Directorate General Payment Systems, on behalf of the ESCB.

The Group met on an alternating basis in Paris and Frankfurt. The secretariat of this Group was also jointly performed by a member of the CESR secretariat and an ESCB staff member. CESR formed a consultative working group which was appointed to provide advice to the expert group. The members were experts drawn from across the European Markets. They were not intended to represent national or a specific firms’ interest and did not replace the important process of full consultation with all market participants. The Group has also undertaken institutional consultations with for example the Banking Supervisors Committee (BSC).