Recommendation 1 Recommendation 2 Recommendation 3 Recommendation 4

Recommendation 5 Recommendation 6 Recommendation 7 Recommendation 8

Market selection

Recommendation 1

Securities Systems* have a primary responsibility to their users** and other stakeholders. They must provide effective low cost processing. Services should be priced equitably.

* Securities Systems = depositories, settlement and clearing systems
** Users = customers of the securities system, and all other parties to whom the securities system owes a duty of care

1.	Is the board that governs the depository answerable to its users?	Euroclear France is a a subsidiary of Euroclear Bank, a bank incorporated in Belgium. The board members of Euroclear France are chosen by Euroclear Bank. The board is answerable to users through a users committee comprised of 20 people from French commercial banks, brokers, issuers and professional associations.
2.	Does any single organisation, or sector (e.g. brokers, custodians, Stock Exchange) have a large voting position at the board of the depository?	Yes, commercial banks.
3.	Is there cross subsidisation of products (e.g. international services subsidised by local ones or transaction costs subsidised by asset servicing charges)?	Products are not delivered to users at cost, however Euroclear France's fees are likely to be insulated from unit costs. Products are priced according to a tiered pricing system based on transaction volumes and/or size of holdings.
4.	What process is in place at the depository to ensure that it meets the needs of all its stakeholders (e.g. institutions, broker dealers, retail investors, issuers)?	Refer to 2; Users Committee.
5.	What is the communications strategy of the depository to its stakeholders and how is this run?	Euroclear France has a direct link with users and communicates on a regular basis; several times a week via technical notes - paper, fax or internet - and they organize several meetings per annum where new projects and market evolutions are presented.