Readying the Amsterdam Eurobase

On January 1 1996, two EU directives will take effect which will liberalise securities trading to the same extent as has already been achieved in the European banking and insurance industries. The Investment Services Directive stipulates that any securities house recognised as an investment institution in an EU member state be entitled to a 'European passport' enabling it to operate on any EU market; the Capital Adequacy Directive sets minimum solvency requirements for such institutions.

The directives will make it easier for houses to become members of bourses elsewhere in the EU. From January 1, EU bourses will in theory not be allowed to refuse membership to foreign houses carrying a European passport - for example, a US brokerage with a London bourse membership will be eligible for the passport and therefore qualify for membership in the continental markets.