Revised EU share trading rules back on track.

Financial News, June, 2003

Byline: Patrick Blum in Brussels

European Commission proposals on new share trading rules have been given a boost as European parliament members prepare to support a compromise that would include controversial disclosure requirements for in-house trades.The proposal - the investment services directive - would allow investment banks to compete with stock exchanges across Europe, but they would have to disclose prices for retail orders before they are executed, allowing others to offer a better price.

This requirement has been strongly criticised by banks and the London Stock Exchange, which argued that pre-trade transparency would kill in-house trading activity and result in higher costs for investors. MEPs said they would try and remove it from the...

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