Investment Services Directive (ISD) Review

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In November 2000, the European Commission announced its intention to undertake a review of the Investment Services Directive (ISD). The review is the latest example in a long series of attempts by the EU to forge its segmented national securities markets into a unified market. Since the 1960s, the EU had launched various initiatives aimed at creating a common regulatory regime for investment services. Not until the end of the 1980s, however, as part of the Single Market Programme, did these efforts achieve any result: the 1993 ISD. All debates on the shape of an EU regulatory regime have been characterised by profound divergences of views on how to handle competition in the securities trading field. In the 1960s, this took the form of debating the pros and cons of concentration rules, i.e. requiring all trade orders to be routed to a stock exchange. This debate and the ensuing division between member states were repeated in the discussions leading up to the 1993 Directive. Following a decade of profound market change, the debate during the current review has focused on transparency requirements. By linking fragmented markets together, these offer the prospect of reconciling the benefits of competition with the benefits of informative central prices. The debates on their content and allocation mirror those of earlier decades, however, with some member states stressing the value of competition, and hence hesitating to extend a comprehensive regime to all market participants, and other members emphasising the importance of market integrity and investor protection, and accordingly promoting wide-ranging transparency rules.   

Members of the Task Force

Rapporteur

Mattias Levin, Research Fellow, CEPS  

Members and observers

Ludovic Aigrot, Special Adviser, European Affairs, Euronext Brussels

Paul Arlman, Secretary General, Federation of European Securities Exchanges (FESE)

Alberto Baltanas Nunez, Economist, Banco Santander

Matthias Bock, Executive Director & Counsel, Goldman Sachs International

Richard Britton, ISMA - International Securities Market Association

Asuncion Caparros, Vice President, EU Liaison Office, ABN Amro Bank N.V.

Nick Collier, Director, European Government & Reg. Affairs Instinet Europe Ltd

Ronny Cosijns, CAPCO Mr. Daniel Dax, Deputy Director, Luxembourg Stock Exchange

Simonetta Di Cagno, Head of Representative Office, Assonime

Sophie Gautié, EU Representative, General Secretariat, BNP Paribas Securities Services

Kyriakos Gialoglou, Research Fellow, CEPS

Charles Goldfinger, Managing Director, Global Electronic Finance

Daragh Grant, Public Policy Analyst, UBS AG

Alasdair Haynes, Chief Executive Officer, ITG Europe

Ellen Hörth, Referent, Capital Markets Policy, Deutsche Bank AG

Staffan Jerneck, Deputy Director & Director of Corporate Relations, CEPS

Adam Kinsley, Head of Regulatory Strategy, London Stock Exchange

Jens Krenchel, Adviser, Confederation of Danish Industries - DI

Karel Lannoo, Chief Executive, CEPS

Henry Manisty, Head, Government & Regulatory Affairs, Reuters

Alex Marin, CAPCO

Jose Ramon Martinez Resano, Senior Economist, Operations Department, Bank of Spain

Colleen McBrien, Manager, Policy Development, London Stock Exchange

Arianna Mellini Sforza, European Affairs Office, San Paolo - IMI SpA

Wim Mijs, Senior Vice President, Head of Representative Office Brussels ABN Amro Bank N.V.,

Joaquin Monells, Deputy General Manager, Head Representative to the EU & ECB, BBVA

Salim Nehmé, Senior Adviser, French Banking Federation

Gregor Pozniak, Deputy Secretary General, Federation of European Securities Exchanges (FESE)

Fabio Recine, Legal Counsel, European Central Bank

Wendy Reed, Senior Manager, PERAS, PricewaterhouseCoopers

Donald Ricketts, Consultant, GPC International

Sophia Saridou-Zafiropoulou, General Director, Association of Members of the Athens Stock Exchange

Stephan Schuster, Managing Director, Capital Markets Policy, Deutsche Bank AG

Kleanthi Seimanidi, Lawyer, Association of Members of the Athens Stock Exchange

Helen Stack, European Policy Advisor, Centrica plc.

Massimo Suardi, Economist, DG ECFIN, European Commission

Angela Teke, Director, Wholesale and Regulation, British Bankers Association

Henning vom Stein, Assistant Manager, Deutsche Bank AG

Christoph Wengler, Assistant Manager & Analyst, Commerzbank EU-Liaison Office Brussels

Georgios Zavvos, Member of the Legal Service, former Member of the European Parliament (MEP), European Commission

Meetings of the Task Force

1st meeting: 2 Oct 2002

2nd meeting: 9 Dec 2002

3rd meeting: 31 Mar 2003  

Final Report of the Task Force, April 2003

'Competition, Fragmentation and Transparency: Providing the Regulatory Framework for Fair, Efficient and Dynamic European Securities Markets, Assessing the ISD Review'

Disclaimer: Affiliations are provided for identification purposes only. Task Force members participated as individuals; the report reflects their own views and not those of organisations with which they are affiliated. The report is approved and supported by all Group members. However, members may not necessarily agree on all the detailed issues.