Plumbers and Visionaries: Securities Settlement and Europe's Financial Market

Preface.

PART I: NEW PROBLEMS. NEW SOLUTIONS.

Chapter 1: Settling Securities Across Borders.

1.1 Turnover in the trillions.

1.2 Process and players.

Chapter 2: The Eurobond Market and the New York Settlement crisis.

2.1 Autostrade shows the way.

2.2 Foreign dollar bonds and their settlement.

2.3 From Autostrade to the New York Settlement Crisis.

2.4 The AIBD.

2.5 Settlement Services in Luxembourg.

Chapter 3: The ICSDs - Euroclear and Cedel.

3.1 Closings in Brussels.

3.2 The creation of Euroclear.

3.3 Establishing Cedel in Luxembourg.

3.4 Cedel’s success.

3.5 The wider settlement picture.

Chapter 4: Euroclear fights back.

4.1 Sale of Euroclear to its users.

4.2 Difficult days.

4.3 Commitment to investment.

4.4 Euclid.

4.5 Securities lending and borrowing.

4.6 The Bridge.

4.7 Prospering in difficult times.

PART II: WINDS OF CHANGE.

Chapter 5: New Markets, New Tensions.

5.1 Caviar and Champagne.

5.2 1980s – Deregulation and securitisation.

5.3 Diversification at Euroclear.

5.4 The Belgian cooperative.

Chapter 6: After the crash.

6.1 Strengthening cooperation and national systems.

6.2 European considerations.

6.3 American influences.

6.4 Central banks push for DvP.

Chapter 7: The Coming of the Euro.

7.1 A world transformed.

7.2 Beyond G30.

7.3 The EMI and Lamfalussy.

7.4 The growth of Repo activity.

7.5 The ECB and Securities Settlement.

PART III: AN INDUSTRY IN FERMENT.

Chapter 8: The Rivals.

8.1 Euroclear and the boom in domestic markets.

8.2 Lussi and the revival of Cedel.

Chapter 9: Change at the Exchanges and CSDs.

9.1 Investment and consolidation.

9.2 Seifert in Frankfurt - A story of vertical integration.

9.3 Theodore in Paris - Innovation through IT.

9.4 Taurus and Crest - a horizontal system by accident.

9.5 The Swiss Value Chain.

9.6 Different blueprints.

Chapter 10: Corporate Manoeuvrings.

10.1 Pressure for change.

10.2 A European Clearing House?

10.3 A meeting of minds in Marrakech.

10.4 Dark days for Euroclear.

10.5 The fight back begins.

10.6 The French defect.

Chapter 11: Euroclear Transformed.

11.1 Euroclear separates from Morgan.

11.2 The creation of Euronext.

11.3 Euroclear acquires Sicovam.

Chapter 12: Seifert's Silo.

12.1 A flurry of initiatives.

12.2 Lussi’s fortunes ebb.

12.3 Lussi’s downfall.

12.4 The banks change tack.

12.5 Seifert secures Clearstream.

Chapter 13: Europe with Two Settlement Models.

13.1 Euroclear acquires Crest.

13.2 A sub-optimal outcome.

13.3 Embedding the vertical and horizontal models.

13.4 LCH and Clearnet merge.

13.5 Fair and Clear.

13.6 Changes in structures and governance.

PART IV: AN ISSUE FOR EUROPE.

Chapter 14: The EU reacts.

14.1 The Lisbon Agenda.

14.2 The Lamfalussy Committee of Wise Men.

14.3 The Giovannini Reports.

14.4 The cost of fragmentation.

14.5 The Commission responds.

14.6 The Andria report.

14.7 The ESCB/CESR standards.

14.8 The G30 and EFR reports.

14.9 MiFID.

14.10 The Commission’s second communication.

14.11 The arrival of McCreevy.

Chapter 15: Setting Parameters.

15.1 Algorithms and Exchanges.

15.2 Seifert and the law of unintended consequences.

15.3 Exchange consolidation: an unpredictable catalyst.

15.4 Competition authorities turn against silos.

15.5 Competition and interoperability.

15.6 For and against a single CCP.

15.7 User discontent.

15.8 Change at Euroclear.

Chapter 16: Work in Progress.

16.1 Euroclear’s domestic market for Europe.

16.2: Cesame and the dismantling of the Giovannini barriers.

Chapter 17: Frameworks for the Future.

17.1 Two solutions at once.

17.2 The code of conduct.

17.3 Target2-Securities.

17.4 T2S - The follow up.

17.5 Questions and more questions.

Chapter 18: Conclusions and Reflections.

Appendix A. References and Bibliography.

Appendix B. Key dates for the Securities Settlement Industry in Europe.

Appendix C. Who’s Who in the History of European Securities Settlement.

Appendix D. Glossary of Technical Terms.

Appendix E. Afterword.

Index.