Following this morning's announcement by the London Stock Exchange that it was against proposals for...
Following this morning's announcement by the London Stock Exchange that it was against proposals for the new EU Investment Services Directive to restrict trading in shares to exchanges, APCIMS, the chief UK body representing private client investment managers and stockbrokers, says it is once again urging the European Commission to make sure that stock exchanges are not allowed to use consumer protection as an excuse to put up trading costs.
APCIMS says the proposals put forward by different European stock exchanges to regulate trading would result in increased costs for consumers through reduced competition.
APCIMS also says it is concerned that the proposals for the Investment Services Directive do not yet take enough account of how the new rules will actually be enforced, which could lead to a situation where the directive becomes haphazardly implemented across the union.
There are likely to be several more submissions from Europe's biggest exchanges on the issue of internalisation and trading rules because of the ongoing struggle between the three main exchanges.
And although the LSE could be lumped in with its rivals Euronext - the amalgam of exchanges in Paris, Brussels and Amsterdam - and Deutsche Borse based in Frankfurt in terms of wanting to retain its status, the three are also looking to establish rules that would benefit one over the other.
Many analysts expect consolidation of stock exchange operators in the face of continued interest by the New York based Nasdaq market to create a seamless transatlantic market.
All three markets above have been linked to discussions with Nasdaq at some time or other, which means their submissions to the consultations for the Investment Services Directive will be tainted with the knowledge that the right set of rules would make a takeover more palatable.
So far Euronext and the LSE have put forward arguments with enough significant differences to indicate the lobbying process could be stepped up ahead of any final drafts of the new directive.
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