And a third workshop in Ljubljana examined cost , benefit and risk issues relating to central counterparty clearing .

On 11 July 2006 the European Commission invited the industry to reduce the cost of clearing and settlement in the EU .

The Eurosystem understands that in this domain a common European standard would increase competition between processors and reduce the costs of clearing and settlement .

Clearing and settlement .....

It is expected that , as a result , the number of retail payment clearing and settlement infrastructures and the costs related to their services will decrease ECBc Towards a Single Euro Payments Area Objectives and deadlines February 2006

Clearing and payment systems

( d ) cost sharing mechanism ( e ) the cost of capital .

And what about black point compensation?

Service providers should move towards STP in order to help achieve timely , safe and costeffective securities processing , including confirmation , matching , netting , settlement and custody .

Interest expense Net interest income

Standard 17 Transparency CSDs and CCPs should provide market participants with sufficient information for them to identify and accurately evaluate the risks and costs associated with securities clearing and settlement services .

With respect to a compensation offer for a payee

What are clearing and settlement ?

( ii ) the existence of a functioning market economy as well as the capacity to cope with competitive pressure and market forces within the EU

Deficit ratio the subject of one of the fiscal convergence criteria named in Article 104 ( 2 ) of the Treaty .

Bilateral procedures include operations executed through stock exchanges or market agents .

And what about operating costs?

Calculation of compensation 3 .

Calculation of compensation 3.1 .

other issues ( clearing and settlement , supervisory cooperation ) .

Article 22 Clearing and payment systems

Glossary of payment , clearing and settlement terms

( e ) costs of foreign exchange transactions and other general costs shall be posted to the profit and loss account .

4.3 SECURITIES CLEARING AND SETTLEMENT The Eurosystem has a particular interest in the smooth functioning of securities clearing and 11 Each foreign exchange trade consists of two transactions , one in each currency involved . Thus , in December 2005 CLS settled trades with an average daily value equivalent to USD 1.3 trillion ( around Euros 1.1 trillion ) .

Administrative Costs.

Foreign exchange risks and transaction costs eliminated

Interest expense ( ) 1 .

Other interest expense 1.2 .

Cost efficiency , measurement and methodology

4.4 Electronic money and investigations in e commerce and e payments In 2001 the Eurosystem extended its attention to new developments in the area of 5

The process of consolidation of the EU securities clearing and settlement industry continued in 2003 with the merger between two major central counterparty clearing houses , Clearnet and the London Clearing House .

To this end , all printing works participating in single Eurosystem tender procedures shall fully identify their income and costs and in particular provide information on ( a ) the setting off of any operating losses

2000 Euros Income from fees and commissions Expenses relating to fees and commissions Net income from fees and commissions 1,296,112 ( 622,614 ) 673,498 1999 Euros 593,902 ( 361,702 ) 232,200

RETAIL PAYMENT CLEARING AND SETTLEMENT INFRASTRUCTURES

preparing an updated cost calculation in order to confirm the overall cost framework ( Euros 500 million for building costs and Euros 850 million total investment costs , based on 2005 prices )

Salaries , allowances , staff insurance and other miscellaneous costs of Euros 133.4 million ( 2005 Euros 127.4 million ) are included under this heading .

Compensation of receiving TARGET participants ( a ) The compensation offer under the TARGET Compensation Scheme shall consist of an interest compensation only .

( f ) costs of foreign exchange transactions and other general costs shall be posted to the profit and loss account .

( c ) income shall be recorded gross with refundable withholding and other taxes accounted for separately Article 13 General rules

ADMINISTRATIVE EXPENSES

And that creates additional costs.

Claims arising from the credit facility under ERM II Lending to euro area credit institutions related to monetary policy operations denominated in euro 5.1 . Main refinancing operations 5.2 .

Fees and commissions expense 3 .

Opportunity cost is one way to measure the cost of something.

ECB 's FINAL ASSESSMENT AND COMPENSATION OFFER 7.1 .