MiFID Review

MiFID is the European legislation that provides the basis for operating trading venues. A review of MiFID is currently carried out. It could result in:

• A better level playing field between various execution venues
• Widened transparency requirements on OTC trading and non-equity trading
• Improved quality and comparability of market data

The European Commission’s MiFID website

Corporate governance

Across Europe, there are Corporate Governance Codes in place in each country. The comply-or-explain approach prevails. This approach, and other issues, are currently addressed. Policy options going forward may include:

• Rules on disclosure of non-financial information
• Legislation on corporate governance instead of codes
• Legislation on remuneration policies

 The European Commission’s website on business environment

Taxation

Taxation is subject to national legislation and is not common or harmonized across Europe. However, in some areas, work is done aiming at streamlining and harmonizing tax policies, where this could be useful, necessary and possible. There is special focus on the elimination of tax obstacles to all forms of cross-border economic activity, in addition to continuing the fight against harmful tax competition.

The European Commission’s website on taxation

Short Selling

A European regime for short selling is being developed. It will harmonise the current national practices and facilitate cross-border business. The content of the regime may be:

• More transparency on short selling activities towards authorities and the market
• A "circuit breaker" provision
• Harmonised buy-in/close-out provisions

The European Commission’s website on short selling

Prospectus Directive

The Prospectus Directive provides a European framework for when an issuer needs to draw up a prospectus and the content of it. It has just been reviewed and the changes will start being applied during 2012. The changes include:

• Raising of thresholds for the obligation to produce a prospectus
• Adaptation of some requirements for smaller and medium sized issuers
• Reduced national options, ensuring a more harmonized regime across Europe

The European Commission’s website on the Prospectus Directive

Market Abuse Directive

Confidence in markets is fundamental for exchange trading; market integrity needs to be guaranteed. The Market Abuse Directive is being reviewed. It could result in:

• Harmonized market abuse rules on MTFs, in addition to what is already in place for so called Regulated Markets ("main markets")
• Raised requirements for surveillance on MTFs
• Generally improved safety of securities markets

The European commission’s website on the Market Abuse Directive