Press releases 2006

7 November 2006

London Stock Exchange welcomes code of conduct on clearing and settlement

The London Stock Exchange today welcomed the new Code of Conduct on clearing and settlement. The Exchange wholeheartedly supports the European Commission’s decision to take a non-legislative route to reform of Europe’s clearing and settlement infrastructure. It believes that this can offer a faster solution to the current inefficiencies in the post-trading layer.

The Exchange believes the Code provides a framework for action on equities and a model for similar initiatives in other asset classes. It is consistent with its own approach, which offers choice to customers; based on comparable information, they can decide their preferred venue for trade execution and post-trade services.
Commenting on the Code, Clara Furse, Chief Executive of the Exchange, said:

“The Exchange welcomes the creation of this new Code. Our recent initiative to introduce competitive clearing is a demonstration of our commitment to an open market architecture. We believe that customers should be given choice, and as the barriers for post-trade services are removed, the market will become more efficient. It is now vital that the provisions of the Code are effectively implemented and capable of being enforced. “

As a signatory to the European Code of Conduct on Clearing and Settlement as jointly drafted by members of FESE, EACH and ECSDA, the London Stock Exchange is keen to work with the Commission to reform the provision of post-trade services.

For further information, please contact:

Richard Webster-Smith Press Office +44 (0)20 7797 1222

newsroom@londonstockexchange.com