European Code of Conduct for Clearing and Settlement

All of Europe's Regulated Markets, Clearing Houses and Central Securities Depositories co-operated to define and deliver a Code of Conduct (the Code) on Clearing and Settlement in the latter part of 2006. This was in response to Commissioner McCreevy's announcement to deliver an industry-led approach to a more efficient and integrated post-trading market in the EU, as opposed to proposing a Directive, and he called upon the industry to provide a suitable solution. In response to the Commissioner's call, the three main industry associations - the Federation of European Securities Exchanges (FESE), European Association of Central Counterparty Clearing Houses (EACH) and European Central Securities Depositories Association (ECSDA) - prepared a Code of Conduct.

SWX Europe Limited signed the European Code of Conduct for Clearing and Settlement in November 2006

The code is designed to establish a strong European capital market and to allow investors the choice to trade within a consistent, coherent and effective framework whilst allowing market participants the freedom to choose their preferred provider of services.

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List of signatories of Code of Conduct
European Code of Conduct for Clearing and Settlement

Links to other organisations information on the Code can be found on FESE's website.

There are 3 main elements of the Code with timescales:

Price Transparency, 31 December 2006

The code requires that the signatories provide full transparency for their relevant tariffs and applicable discounts and rebate schemes. This was due on 31 December 2006. SWX Europe tariffs cover Trading, Membership and Infrastructure. Examples of our tariff can be found within Directive 9: Fees. This information has always been publicly available on our website.

Access and Interoperability, 30 June 2007

The Code requires that the Organisations establish access and interoperability conditions in accordance with the principles detailed within Section IV of the Code. These Access and Interoperability Guidelines were agreed between the members of the three industry associations and delivered to the EU Commission ahead of the deadline of 30 June 2007.

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Access and Interoperability Guidelines

SWX Europe acknowledges the Access and Interoperability Guidelines and is fully supportive of the aims.

SWX Europe has offered real user choice in the provision of clearing and settlement providers since the launch of the CCP services in 2003. SIS x-clear AG and LCH.Clearnet Ltd act as Central Counterparties and Euroclear UK & Ireland Ltd, Euroclear Bank and SIS SegaInterSettle AG as Central Securities Depositories. Participants have therefore been able to choose the providers of services which best meets their business needs, which has aimed to alleviate the barriers most commonly associated with cross-border settlement. The model has proven that co-operation and competition between European providers of post-trading services is possible to achieve, and has delivered tangible savings to the users of our services. SWX Europe and its partners in clearing and settlement have therefore already delivered the aims of the Code of Conduct and its Guideline.

Unbundling and Account Separation, 1 January 2008

The Code requires organisations to unbundle services and implement accounting separation in accordance with the principles detailed within Section V of the Code.