Clearstream and Euroclear Bank have jointly developed the framework in collaboration with the International Securities Market Advisory Group (ISMAG).
Clearstream said that the framework is expected to set standards for these securities issued in and primarily deposited with the ICSDs, with outstanding levels close to EUR9 trillion.
According to the Clearstream, the major issuers and industry participants like BNP Paribas Securities Services, Citibank, Issuer Services, European Investment Bank and KfW are supporting the initiative and the associated best practice implementation process.
The new international securities standards program was led under the auspices of ISMAG to identify and encourage best practices in issuance and asset servicing operations throughout the entire value chain.
ISMAG’s recommendations aimed at reducing the inefficiencies, costs and risks in issuing and servicing securities while increasing transparency on the use of the new standards for the benefit of the issuer and investor communities.
ISMAG chairman John Gubert said that the regulatory developments since the financial crisis call for more transparency and accountability in the market. Likewise, investors have growing expectations in terms of service quality levels.
"The recommendations for best market practices are now final. The focus is on increasing awareness and implementation of the new standards as well as changes in behavior by all relevant parties, including issuers, their agents and the legal community," Gubert said.
