THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty establishing the European Community, and in particular Article 95 thereof,

Having regard to the proposal from the Commission [OJ C 180 E, 26.6.2001, p. 312.],

Having regard to the opinion of the European Central Bank [OJ C 196, 12.7.2001, p. 10.],

Having regard to the opinion of the Economic and Social Committee [OJ C 48, 21.2.2002, p. 1.],

Acting in accordance with the procedure laid down in Article 251 of the Treaty [Opinion of the European Parliament of 13 December 2001 (not yet published in the Official Journal), Council Common Position of 5 March 2002 (not yet published in the Official Journal) and Decision of the European Parliament of 15 May 2002.],

Whereas:

(1) Directive 98/26/EC of the European Parliament and of the Council of 19 May 1998 on settlement finality in payment and securities settlement systems [OJ L 166, 11.6.1998, p. 45.] constituted a milestone in establishing a sound legal framework for payment and securities settlement systems. Implementation of that Directive has demonstrated the importance of limiting systemic risk inherent in such systems stemming from the different influence of several jurisdictions, and the benefits of common rules in relation to collateral constituted to such systems.