1. Panel session: Challenges in the field of securities settlement systems
Daniela Russo
Deputy Director General
ECB - Payment Systems and Market infrastructure
Vienna, 11th September 2008

2. What are the main issues?
Regulatory issues (standards)
Integration issues (interoperability)
Collateral issues
OTC derivatives

3. Regulatory issues
CPSS and CPSS-IOSCO standards are now “mature”
(CPSIPS 1999, RSSS 2001, RCCP 2004)
- need for updating?
- cross-consistency check for common issues?
- interdependencies
- new developments (interoperability, OTC derivatives)
ESCB-CESR standards are being finalised

4. Integration issues (mainly but not only EU issues)
Need to create integrated capital markets in the EU
- Removal of barriers to integration (Giovannini reports)
- Code of Conduct
- TARGET2-Securities, Link-up initiative
- ESCB-CESR
Co-ordination at global level where possible
Other regional initiatives? (e.g. North America)

5. - Experience during the turmoil showed the need
Collateral issues
- Experience during the turmoil showed the need
for more flexibility to facilitate distribution of
international liquidity
- Some central bank facilities, identified in the FSF
report early this year
- Public and market solutions to facilitate cross-
border delivery of collateral are necessary
- The Eurosystem CCBM2

6. - Need for adequate infrastructure - CPSS report - DTCC initiative
OTC derivatives
- Need for adequate infrastructure
- CPSS report
- DTCC initiative
- Recent initiatives to establish a CCP for CDSs