Trading screens rap for US

Date: 16/10/03

FRITS Bolkestein, the commissioner for the internal market, has delivered a fresh attack on US rules that make it hard for EU-based stock exchanges to win business from traders on Wall Street.

The Dutchman, who was in Washington this week to meet top finance officials, said he wanted "concrete action" to allow US traders and brokers to freely access electronic trading screens for EU markets.

"At the moment, European exchanges wishing to install trading screens in the US can only do so if they comply with the full panoply of US regulations, in addition to the regulations that they must already comply with in their home member state."

He said a "workable solution" must be found that cuts red tape for EU markets yet ensures American investors are protected. "At the moment, the playing field might look level, but the US is forcing our exchanges to run twice the distance for a home-run," Bolkestein added.

His comments came ahead of key talks aimed at breaking the deadlock between the EU and US over the way the controversial Sarbanes-Oxley Act should be implemented.

The law, passed in the wake of US corporate scandals such as Enron and WorldCom, requires EU-based audit firms to register with the US Public Company Accounting Oversight Board (PCAOB). Firms implicated in financial scandals would also face US-led investigations in their offices.

But, as European Voice went to press, Bolkestein was hopeful of brokering a compromise deal to lessen the burden on EU firms, in time for the April 2004 deadline for registrations. Under one possible scenario, European auditing firms would instead have to sign a "joint register" with their local authorities in member states and the PCAOB. At the same time, the EU would beef-up auditor controls.

Frits Bolkestein, European Commissioner for the Internal Market has attacked the Sarbanes-Oxley Act rules which make it difficult for European-based stock exchanges to win business from Wall Street traders.