Council Common Position on ISD

19 March 2004

The Council decided on a Common Position during a meeting of the permanent representatives committee (COREPER). A new recital now states that article 27 does not oblige systematic internalisers to publish firm quotes in relation to transactions above standard market size.

The standard market size will now be calculated on the base of “the arithmetic average value of the orders executed in the market for the shares included in each class of shares”. Further details will have to be defined by CESR

Council also decided not to follow the Parliaments request on so-called price improvement. The Council does not think that firms should be able to improve on their public quote when dealing with retail clients.

The final vote in Parliament will be on 30 March.

Common Position

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