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Settlement Finality

The Settlement Finality Directive adopted in May 1998 is aimed at reducing the systemic risk associated with participation in payment and securities settlement systems, and in particular the risk linked to the insolvency of a participant in such a system. The Directive applies to payment and securities settlement systems as well as any participant in such a system, and to collateral security provided in connection with the participation in a system, or operations of the central banks of the Member States in their functions as central banks.

Directive 2009/44/EC amending the Settlement Finality Directive and the Financial Collateral Arrangements Directive

10.06.2009 Publication of Directive 2009/44/EC of the European Parliament and of the Council of 6 May 2009 amending Directive 98/26/EC on settlement finality in payment and securities settlement systems and Directive 2002/47/EC on financial collateral arrangements as regards linked systems and credit claims
24.04.2008The Commission has adopted a proposal to amend the Settlement Finality Directive and the Financial Collateral Arrangements Directive in order to bring both Directives in line with market and regulatory developments in the post-trading area.

Commission evaluation of Settlement Finality Directive

Directive 98/26/EC

Directive of the European Parliament and of the Council of 19 May 1998 on settlement finality in payment and securities settlement systems
Official Journal L 166 , 11/06/1998 P. 0045 - 0050

Notifications to the Commission

Background information