European Union regulators proposed July 29 radical modifications on how the region’s securities markets operate.
The European Commission is reviewing the directive on markets in financial instruments, an EU law that seeks to foster harmonized regulation for investment services across the European Economic Area.
The Committee of European Securities Regulators, which is advising the European Commission on drafting amendments to the directive, has made recommendations that may alter business models of stock exchanges, brokers, banks and new trading venues.
One recommendation is the mandatory establishment of a consolidated “tape” or “pipe,” which contains all the prices from share trades across the whole market.
“The efficient development of a European consolidated tape for shares on the basis of clear rules and a viable economic model involving the industry is amongst a number of key proposals which should deliver major transparency benefits,” Sally Dewar, managing director at Britain’s Financial Services Authority, said, as quoted by The Wall Street Journal.