Joint statement by the UK and German supervisory authorities on regulatory issues concerning iX-international exchanges plc

The Authorities emphasise in this paper that the development of iX-international exchanges plc (the Group) needs to take full account of requirements of market integrity - in particular the prevention of insider dealing and market abuse and of market transparency and the protection of investors.

The Authorities have set up six working groups to develop joint arrangements for an appropriate and efficient supervision of the Group. It is the aim of the working groups to compare and assess the relevant provisions in Germany and the UK. The groups will work towards further harmonisation of supervisory standards where a common supervisory approach is appropriate.

In order to assess where the need for harmonised standards may arise they will have regard to the nature of the market models for the Group, as far as they have been currently developed. The scope and nature of appropriate common regulatory standards will vary depending on the exact nature of the Groups activities and structure.

Beside the existing agreements to facilitate the exchange of information and support co-operation, the Authorities have agreed to set up two permanent fora to discuss regulatory issues on a regular basis and develop precautionary measures for an even more efficient exchange of information, as well as ad hoc measures to provide mutual support in the enforcement of regulatory measures.

The six working groups are dealing with:

• questions of market structure (structure and corporate governance of iX-international exchanges plc, admission of trading participants to the respective exchanges),
• listing and ad hoc requirements (e.g. listing of securities on the exchanges, ad hoc disclosure, etc.),
• transaction reporting and market surveillance (reporting of securities transactions, common data structure as a basis for supervision),
• legal issues in connection with insider dealing and market abuse,
• corporate takeovers, and
• clearing and settlement of securities transactions.

Notes for editors

1. The FSA regulates the financial services industry and has four objectives under the Financial Services and Markets Act 2000: maintaining market confidence; promoting public understanding of the financial system; the protection of consumers; and fighting financial crime.

2. The FSA aims to maintain efficient, orderly and clean financial markets and help retail consumers achieve a fair deal.

3. The FSA currently supervises the London Stock Exchange as a recognised investment exchange under the Financial Services Act 1986. The FSA is also the UKs Listing Authority for admission of securities to the Official List.

4. The relevant German authorities comprise the Federal Securities Trading Supervisory Office (BAWe) and the Exchange Supervisory Authority of the Hessian Ministry of Economics, Transport and Urban and Regional Development. The BAWe is the German federal supervisory body whose responsibilities include investigating insider dealing, ensuring market transparency, protecting investors, and international co-operation. The Exchange Supervisory Authority of the Hessian Economics Ministry is principally responsible for regulation of the Frankfurt Stock Exchange.

Appended information

This joint statement is available from the publications section of our web site. The direct URL is http://www.fsa.gov.uk/pubs/press/2000/111.pdf.