Deal On Market Rules Will Open Up Financial Services To Europe-Wide Competition

6.08.00am GMT Fri 19th Mar 2004

Commenting on the latest text of the investment services directive endorsed by the permanent representatives of the member states, Chris Huhne MEP, economic and finance spokesman of the European Liberal Democrats: "This is a workable compromise that fulfils my key objective, which is to open up European share markets to competitive trading and to give european investors a better deal."

"Although the deal does not go as far as I would like, there is no doubt that it will represent a major step forward if the Commission implements it in a liberal manner. It is a big improvement on the council's common position thanks to the tough negotiating of the European Parliament team" said Mr Huhne. "The parliament has saved the day."

Mr Huhne, who was one of the MEPs involved in talks with the Commission and the Council, said that he will recommend that the Liberal group backs the compromise. He pointed out that the text not only eliminates so-called concentration rules - insisting that shares are traded through an exchange - but also will not reintroduce them by the back door.

"This text also makes execution only stockbroking safe and extends the type of shares that can be done on an execution only basis."