European regulators favour gradual reform of electronic trading

Author: | Published: 1 Nov 2000

Europe's financial watchdogs plan to continue regulating alternative trading systems (ATSs) as they regulate brokerages, rather than classify ATSs as separate exchanges to be governed by stock exchange rules, says a recent report.

In its paper to the European Commission, the Forum of European Securities Commissions (FESCO) concluded that the Investment Services Directive (ISD), which regulates investment firms, can be used to control most of the risks posed by electronic trading systems. At present, ATSs are...