Responding to the European Commission's second consultation on upgrading the Investment Services Directive, the Exchange outlined its support for the proposed competitive model, in which exchanges, ATSs and investment banks offer an array of services to investors, including trade execution.
The Exchange believes that the additional choice provided by banks internalising trades enhances liquidity and market efficiency to the benefit of investors. It suggests that the protection of investors would be best achieved through a robust conduct of business regime rather than pre-trade transparency regulation.
The response stated that the Exchange continues to retain its central market function within an environment where competition is encouraged, and will strengthen its position by continuing to develop its trading platforms and introducing innovative services.
The Exchange's response to the EU consultation is available to download in Word format.
