25 April 2018

EC urges trading system rules revision

17 November 2000  |  2060 views  |  0 EC urges trading system rules revision

The European Commssion is calling for a revision of the rules governing the treatment of alternative trading systems and regulated exchanges.

Internal Market Commissioner Frits Bolkestein says: "We need to update the Union's securities markets legislation to reflect profound changes in securities trading infrastructure, exchanges, clearing, and settlement systems since the Investment Services Directive came into force five years ago. Under the influence of the euro and new technologies the pace of change can only accelerate."

The consultation, which runs until March 31 2001, focuses on two specific areas: the 'single passport' for investment firms; and the development of an appropriate regulatory framework for the trading infrastructure. Bolkestein has called for contributions from all interested parties, including the European Parliament, national authorities, market players and regulators.

According to the single passport principle, a provider authorised in one EU Member State is free to provide that service anywhere else in the Union but can still be subject to conduct of business rules in the host Member State. The Commission believes that revision of the ISD should create the legal environment in which the 'passport' can become effective immediately for inter-professional business and be progressively extended to cover provision of services to retail investors.

The Commssion also notes that many of the changes in European securities markets are occurring at the technical level of exchange organisation, as well as trading, clearing and settlement systems. At present, EU securities legislation provides for "regulated markets" to serve investment firms in other Member States but does not properly provide for safeguards in relation to disclosure, transparency, integrity and stability.

"This potentially distorts competition and co-operation between exchanges and trading systems," states the Commission.

The Commssion wants to know whether it would be useful to apply common principles to trading systems - including new electronic trading arrangements - and if so, what these principles should be. Brussels is also seeking to stimulate collective debate on the need for common regulatory and supervisory responses to consolidation of clearing and settlement functions.

Comments: (0)

Comment on this story (membership required)

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board: sign up now

Related stories

European banks take Step1 for retail payments

European banks take Step1 for retail payments

17 November 2000  |  3747 views  |  0 comments
European Commission to crack down on payments

European Commission to crack down on payments

10 November 2000  |  3980 views  |  0 comments
EC calls for "quantum leap" in financial markets integration

EC calls for "quantum leap" in financial markets integration

08 November 2000  |  2609 views  |  0 comments

Related blogs

Create a blog about this story (membership required)
Visit www.nextgenbanking.co.ukVisit http://go.jumio.com/finextraAd

Top topics

Most viewed Most shared
Top tier banks pass first transactions on trade finance blockchainTop tier banks pass first transactions on...
14957 views comments | 21 tweets | 28 linkedin
TransferWise becomes first non-bank to open settlement account with BofE RTGSTransferWise becomes first non-bank to ope...
11499 views comments | 18 tweets | 32 linkedin
'Fake data' will make banks vulnerable - Accenture'Fake data' will make banks vulnerable - A...
9867 views comments | 26 tweets | 36 linkedin
Irish central bank tunes in to fintechIrish central bank tunes in to fintech
8963 views comments | 20 tweets | 21 linkedin
Major card schemes zero in on single 'buy' button for online commerceMajor card schemes zero in on single 'buy'...
8862 views comments | 20 tweets | 36 linkedin

Featured job

Competitive base, double OTE
London, UK or Paris, France or Frankfurt, Germany (other major cities in Europe considered)

Find your next job