09 April 2002

CESR: Stabilisation and Allotment - a European Supervisory Approach

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The continuing development of the Single Market in financial services, in particular following the introduction of the Euro, is likely to generate a progressive increase in the number of cross-border offerings of securities. For the efficiency of the market and protection of investors, it is desirable that CESR1 members develop common approaches to key elements of the offering process.

CESR has already published ” Market Conduct Standards for Participants in an Offering”. These standards deal with the control and dissemination of information and certain aspects of trading activity. The purpose of this present paper is to address those issues that were not covered in the Market Conduct Standards and where there is a need for harmonisation.

This paper provides harmonised standards for stabilisation practices in the context of a public offer and a harmonised disclosure regime for the Allotment of securities as well as some basic principles of the Allotment process. This work has not been elaborated under a formal mandate of the EU Commission in the context of the future Directives on Insider Dealing and Market Manipulation or the future Directive on Prospectuses. However, these standards represent an important 'acquis' for any future work to be undertaken on the same subject.

See full CESR paper.

A summary of the responses received in the second consultation of the FESCO Document “Stabilisation and Allotment, A European Supervisory Approach” was also published. This document has a summary character and should not be seen as a full and exhaustive inventory of all responses received.

See responses.

© CESR - Committee of European Securities Regulators