European Code of Conduct for Clearing and Settlement

The Code itself can be found on the European Commission’s website.

Links to other organisations’ responses to the Code can be found on the FESE website.

The Exchange announced that it had signed the code on 7 November 2006.

There are three main elements to the code:

Price transparency
The Code requires that the signatories provide full transparency of their relevant tariffs and discounts from 1 January 2007. For the London Stock Exchange this covers its trading tariffs. The relevant tariffs are for Trading, Membership and Connectivity (Extranex).
The London Stock Exchange has a rebate scheme for market makers meeting certain conditions for securities outside the FTSE 350.

The London Stock Exchange has provided some examples to show how these tariffs would be applied in typical situations.

Access and interoperability
The Code requires that the signatories allow for access and interoperability as defined in the Code from 1 July 2007.

Unbundling and accounting separation
The Code also requires that the signatories make certain services available on an unbundled basis and to implement accounting separation from 1 January 2008.

In accordance with Article 44 of the European Code of Conduct for Clearing and Settlement ("the Code") we engaged PricewaterhouseCoopers LLP ("PwC") to perform a limited assurance engagement on Parts I & II of the Self-Assessment Report of London Stock Exchange Plc on the principles of service unbundling and accounting separation as outlined in the Code, for the year ended 31 March 2009. PwC's private assurance report to the Board of Directors of London Stock Exchange Plc has been copied to the FSA in accordance with paragraph 2 of the Terms of Reference to the Code.

Downloads
London Stock Exchange pricing examples September 2009 (file doc - 112 KB)