Key facts
- The EU aims to strengthen its stock market to compete with international rivals.
- New proposals from EU legislators target stricter regulations for market dealers.
- Concerns have been raised that these rules could decrease market liquidity.
- The objective of enhancing global competitiveness for European markets may be jeopardized.
The European Union is pursuing initiatives to enhance its equity markets and make them more competitive on a global scale. However, a recent development involving proposed stricter regulations for market dealers has caused concern within the industry. According to industry participants, these new rules risk diminishing overall liquidity in European markets, which is counterproductive to the stated goal of market growth and increased global competitiveness.