First Sentence

"We would like to draw the attention to two aspects in particular of the Directive as these have been implemented by the various Member States: (a) the scope of the Directive, i.e. does the implementing legislation of the relevant Member State apply to the participation of domestic institutions in non-EEA payment and securities settlement systems, and vice versa, does this legislation apply to the participation of non-EEA institutions in systems governed by the law of that Member State; and (b) the conflict of law provision of Article 9(2) of the Settlement Finality Directive, i.e. the law regard must be had to in order to determine whether collateral over indirectly held securities is validly created and enforceable."