These recommendations relate solely to infrastructure services

In the Europe of the finance, pricing of post-trading services related to the securities (clearing, settlement, securities conservation) is often considered to be a subject of specialists. In fact, competitive pricing of these services is essential to the success of the European securities industry.

The price charged to users by central counterparties (CCP), central depositories domestic or international CSD (ICSD), for which services where they play a role of market infrastructure, have not significantly changed in recent years despite the significant profits by most of them and the consolidation of the sector. Users of these services (depositary banks, banks investment, etc.) also believe that the transparency of prices and financial information at their disposal are insufficient. These information do not allow them to easily assess the total cost of these services or the relevance of pricing policies that are applied to them. In addition, they believe that their interests are not sufficiently taken into account by the governing bodies of these central infrastructures, particularly in procedures for consultation on the price.

These are the main findings of analyses carried out on key markets Europe from October 2005 to May 2006 by a representative group of users of infrastructure of post-trading, assembled by Eurofi, the "think tank" co-chaired by Jacques de Larosière and Daniel Lebègue, with the assistance of the society of Council Icme. From these findings, this group has established a list of recommendations to strengthen the transparency of the pricing practices and the fairness of the fixed price. These recommendations relate solely to infrastructure services. They must be applied on a broader than currently expected products field by the Commission: they are indeed relevant for the actions, but also to the obligations.

A Eurofi visiting Brussels and professional associations to consider these proposals in the code of conduct being finalized. This is essential requirements to ensure the competitiveness of the European securities post-trading infrastructure, and a reasonable and fair pricing for users. The systematic publication of tariff grids is a first step towards greater transparency. Such transparency requires that the structure of tariff schedules and the description of identical services be harmonised wherever possible. But the most important for users with sufficiently detailed information on prices and discounts ("rebates") policy. These data should enable them to understand the terms of the pricing and simulate the costs they have to assume.

Beyond that, users must also have, on the part of infrastructure, economic and financial information appropriate to assess the reasonableness and fairness of the price. This end, the publication of a breakdown of net sales, costs and volumes related to the main services offered is necessary.

The improvement of the governance of securities on pricing issues infrastructure is also a key to the Group advocating. Formal consultation procedures on pricing policy involving the users should be put in place. The composition of the boards of these infrastructure must ensure the consideration of the opinions of the users. Similarly, the roles management, the Board of Directors and users with respect to the pricing decisions must be clarified.

All these practices are essential to establish a sufficient price transparency. They remain relevant regardless of the outcome of any scholarships or post-trading infrastructure consolidation scenarios, and what that progress in lifting the Giovannini barriers. Finally, after our analysis, these practices can be technically achieved by end 2007 at the latest. This requires a direct involvement of the representatives of the users in the validation and the monitoring of the code. This also assumes that neutral external audits be set up to evaluate the practices and verify that the measures are properly and uniformly implemented by infrastructure.