19 July 2001

FESE: Regulatory Responsibilities of European Exchanges - Propsectus Directive

The Federation of European Securities Exchanges sets out its views on the proposal for a Prospectus Directive
The Draft Directive on Prospectuses does not fully take into account the reality that, in most markets, the functions of prospectus approval and admission to trading/listing are separate. While structures for the approval of prospectuses (according to the Listing and Listing Particulars Directives) differ throughout Europe, regulated markets are commonly responsible for the admission of securities to trading/listing on their markets. In most countries, it is left to the indigenous Exchange to decide whether (and if a choice is available, in which market segment) an issuer's securities shall be traded. Approval of a prospectus by a public authority should not result in an automatic inclusion into trading. Exchanges must continue to exercise their own public responsibility when accepting an issuer's securities for trading on one of their markets. Link to Text

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