Germany: Bundesbank Monthly Report: Regulation of the European securities markets

The Financial Services Action Plan (FSAP) and its implementation have influenced the debate about the European single market for financial services since the Plan was adopted in May 1999. Containing a multitude of individual measures, the European Union's Action Plan is the most ambitious initiative for integrating capital markets and achieving a single market for financial services in the EU to date. The discussions have been broadly based and - triggered by the report of the Committee of Wise Men - have also covered legislative and institutional aspects. Whilst almost all of the FSAP's 42 measures have been completed as Directives and Communications, implementation in national legal systems is still outstanding in many areas. This gives cause to consider the regulation of the European securities markets from a central bank's point of view and to address three focal aspects of the FSAP: the new Directive on markets in financial instruments, the Directive on financial collateral arrangements and the Commission Communication on Clearing and Settlement. In a separate section, the shift of focus towards greater capital market orientation in connection with the FSAP will also be considered in the light of its impact on corporate financing and monetary policy