Objectives, Key Principles

1. A single integrated process in Europe for clearing and settlement of equity and debt transactions is the overriding long term objective.

2. The process should deliver the following key objectives:

   • Reliability, integrity and scalability

   • Risk reduction

   • Significant reduction in investment and running costs

3. The solution should incorporate the most appropriate technology, capitalise on existing systems where possible, and be capable of processing an exponential increase in transaction volumes. The industry is not prepared to pay directly or indirectly for duplicate developments.

4. A single clearing and settlement process will require strong governance:

   • No individual organisation should have undue influence.

   • Clearing/settlement should have a separate governance process from trading or payments.

   • The process should be largely owned and directed by securities industry users.