UK/EUROPE - The Committee of European Securities Regulators (CESR) published yesterday, for a second round of consultation, revised proposals for common European standards for alternative trading systems (ATS).
The proposals been prepared by an expert group chaired by Howard Davies, chairman of the UK Financial Services Authority. Also published was a feedback statement summarising the responses received in the first consultation round.
In response to the comments received, Howard Davies said: We believe that these proposals are needed to ensure a level playing field, to maintain confidence in the integrity of European financial markets and to further develop the European single market in financial services.”
The standards aim to ensure, in particular, that the integrity of the markets is protected, and also that users of ATSs are given adequate protection.
CESR believes that its objectives can best be met by concentrating on standards in the following areas:
* Authorisation/registration: the investment firm running an ATS should provide to the competent authorities information about the price formation process, rules of the system, system participants and the types of instruments traded.
* Transparency: ATSs should comply with minimum transparency requirements.
* Reporting rules: additional reporting requirements should be imposed on ATSs to the extent needed to enable competent authorities to monitor market share of ATSs and changes to the information provided during authorisation/registration.
* Prevention of market abuse: requirements placed on ATSs should make it possible to detect, deter and punish market abuse.
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