New EU share trading rules face obstacles.

Financial News, February, 2003

Byline: Patrick Blum in Brussels

EU proposals on share trading that would allow investment banks to bypass and compete with stock exchanges are facing hurdles in the European parliament over a requirement forcing banks to disclose deals before they are executed.Investment banks are opposed to the inclusion of pre-trade disclosure, arguing that it will put them at a disadvantage. The London Stock Exchange also opposed the requirement, saying it would undermine competition. Critics also claim that it will result in extra costs for regulators, banks and investors.

However, Euronext and the French exchange both say the rule should remain to ensure fair competition. The Federation of European Securities Exchanges is also unhappy with the idea of dropping...

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