Euronext, manager of stock exchanges such as Lisbon and Paris, has taken steps to speed up the settlement of public debt securities, with a view to fostering competitiveness and allowing more choice.
According to a statement published this Monday, the 15th, Euronext Securities Milan requested LCH, a European clearing house, to “open the settlement of all European sovereign debts currently cleared by the CCP”.
“This milestone represents significant progress in Euronext’s fixed income strategy, aligning the capabilities of MTS, Euronext Clearing and Euronext Securities,” reads a statement.
The service is now available for Italian, French, Dutch, Belgian, German, Spanish and Austrian government debt securities on Euronext Clearing and will be extended to all European public debt currently cleared by LCH, allowing the settlement of these government debt transactions directly on Euronext Securities.
In a press presentation today on the evolution of the settlement environment in Europe, Pierre Davoust, director of Euronext Securities, argued that with the introduction of this option, there is more competition and issuers and investors have more choice.
The objective is to overcome an “obstacle” to the union of savings and investment, explained the person responsible, pointing out that the market is currently fragmented.
This decision was also supported by a study by Oxera, which concluded that competition in this market can reduce friction, reduce costs and support a more integrated union of savings and investment.