A group of European securities industry trade associations is calling for market players to support the restructuring and subsequent consolidation of the European stock exchange infrastructure.

A statement from the French Association of Investment Firms, the French Banking Federation, the London Investment Banking Association and the Italian Association of Financial Intermediaries, notes that the development of Europe’s stock exchange and post-trade infrastructure has “reached a critical point.”

The groups released a paper setting out their views on the issue of market restructuring. It endorses the approach of the European Commission, and calls for the unbundling of vertical silos, — dividing trading, clearing, settlement and custody into separate operations — if the exchanges do not do so on their own. They also support consolidation to create single, dominant, pan-European infrastructures for clearing and settlement.

The paper also calls for strict governance and competition rules for infrastructure providers and vigorous enforcement of competition law and policy. “Clear governance rules, ensuring users are given a top priority, should also apply to exchanges, which are in a position to benefit from their dominant positions,” it adds.