With its new rules on membership the Amsterdam Exchanges NV is pushing full steam ahead into a united Europe. Brokers, dealers and securities houses all over the EU will be able to take up remote membership of the Exchange without the traditional requirement of an office in the Netherlands. They will have the opportunity to trade through Amsterdam's up-to-the-minute automated trading system, be able to view and place orders, and enjoy the liquidity and stability of the Dutch market - all from their offices in their own countries.
Amsterdam is among the first bourses in the EU to fully implement the European Investment Services Directive (ISD) and the Capital Adequacy Directive (CAD) which come into force on 1 January 1996. Designed to liberalise investment in the European Union, they will facilitate cross-border securities trading.
A Passport to Trade
Under the rules of the ISD, brokers, dealers and securities houses will have to gain a licence or "passport" in their home country. Once they have that, they will be allowed to offer their services anywhere in the EU. For example, a US securities house already trading on the London Exchange would also be able to gain membership of and trade on the Amsterdam Exchanges NV.
Our Own Rules
The ISD will allow bourses to continue to set stringent requirements for membership, as long as they do not discriminate against foreign members.
"When you have an electronic trading system, you don't need traders to be present in person," explains Stephan Follender Grossfeld, head of the legal department at the Amsterdam Exchanges NV. "Since we're fully automated we will not keep the residency rule".
So how will the new foreign members be supervised? Under the Directive, home country authorities and bourses retain supervisory control of their members on the grounds of prudence. However, intermediaries must comply with the conduct of business rules of the foreign bourses where they are members.
ISD Will Promote Competition
It is difficult to predict the effect the ISD will have on the EU and Amsterdam in particular, Mr Grossfeld said, "The ISD is a copy of the second banking co-ordination directive which came into force in 1992. In the long term, he believes that as more and more electronic trading systems come on line and accept remote members, the ISD will help promote cross-border competition. Both investors and listed companies will clearly benefit.
Will Foreign Members Join?
Now that Amsterdam is abolishing the residency rule, Paul Arlman, Secretary General of the Amsterdam Exchanges NV Association expects to see many of those with special corporate membership of the Amsterdam Treasury Bond Market take up full remote membership. That will give them additional access to the full data on prices and company information that will help them make investment and trading decisions in the equity and corporate bond market.
For further information on the Amsterdam Exchanges NV, please contact: Thom Hoedemakers, Director of Communications, Amsterdam Exchanges NV, Beursplein 5, 1012 JW Amsterdam, Netherlands, Tel: + 31 20 5234014, Fax: + 31 20 5234950, or enter a text search "Amsterdam Exchanges NV" and "Business Monitor".
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
Amsterdam is among the first bourses in the EU to fully implement the European Investment Services Directive (ISD) and the Capital Adequacy Directive (CAD) which come into force on 1 January 1996. Designed to liberalise investment in the European Union, they will facilitate cross-border securities trading.
A Passport to Trade
Under the rules of the ISD, brokers, dealers and securities houses will have to gain a licence or "passport" in their home country. Once they have that, they will be allowed to offer their services anywhere in the EU. For example, a US securities house already trading on the London Exchange would also be able to gain membership of and trade on the Amsterdam Exchanges NV.
Our Own Rules
The ISD will allow bourses to continue to set stringent requirements for membership, as long as they do not discriminate against foreign members.
"When you have an electronic trading system, you don't need traders to be present in person," explains Stephan Follender Grossfeld, head of the legal department at the Amsterdam Exchanges NV. "Since we're fully automated we will not keep the residency rule".
So how will the new foreign members be supervised? Under the Directive, home country authorities and bourses retain supervisory control of their members on the grounds of prudence. However, intermediaries must comply with the conduct of business rules of the foreign bourses where they are members.
ISD Will Promote Competition
It is difficult to predict the effect the ISD will have on the EU and Amsterdam in particular, Mr Grossfeld said, "The ISD is a copy of the second banking co-ordination directive which came into force in 1992. In the long term, he believes that as more and more electronic trading systems come on line and accept remote members, the ISD will help promote cross-border competition. Both investors and listed companies will clearly benefit.
Will Foreign Members Join?
Now that Amsterdam is abolishing the residency rule, Paul Arlman, Secretary General of the Amsterdam Exchanges NV Association expects to see many of those with special corporate membership of the Amsterdam Treasury Bond Market take up full remote membership. That will give them additional access to the full data on prices and company information that will help them make investment and trading decisions in the equity and corporate bond market.
For further information on the Amsterdam Exchanges NV, please contact: Thom Hoedemakers, Director of Communications, Amsterdam Exchanges NV, Beursplein 5, 1012 JW Amsterdam, Netherlands, Tel: + 31 20 5234014, Fax: + 31 20 5234950, or enter a text search "Amsterdam Exchanges NV" and "Business Monitor".
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
