Level 3 committee asks for industry evidence on settlement risks to custodian banks
LONDON - The Committee of European Banking Supervisors (CEBS) has released its call for evidence on the coverage of risks borne by custodian banks in response to a June 3 request by The European Union (EU)'s Ecofin council.
The CEBS aims to ensure a level playing field while avoiding inconsistencies in the regulation of custodians or double regulation. It says it will undertake further work on the materiality of custodian banks internalising settlement activities or carrying out Central Counterparty (CCP)-type settlement activities.
The Ecofin Council's report identified current regulatory gaps relating to these activities, following draft recommendations published jointly by the European System of Central Banks and Committee of European Securities Regulators (ESCB-CESR). The CEBS's latest announcement follows its December 18 response on the issue.
The call for evidence takes the form of two questionnaires to gauge market responses to the issue, and will be consulted before the CEBS expects to deliver the results of its assessment in early Q2, 2009.
The call for evidence may be viewed here.
The December 18 response to Ecofin may be viewed here.
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