[The Need of a Pan-European Stock Exchange]

By

Acknowledgement

I would first like to express my gratitude for my research supervisor, colleagues, peers and family whose immense and constant support has been a source of continuous guidance and inspiration.

DECLARATION

I [type your full first names & surname here], declare that the following dissertation and its entire content has been an individual, unaided effort and has not been submitted or published before. Furthermore, it reflects my opinion and take on the topic and is does not represent the opinion of the University.

Signature:Dated:

Executive Summary

With the growing appeal of cross-border trading in Europe, efforts are under way to establish consolidated exchanges that offer trading in stocks from many European countries. An analysis of these evolving pan-European exchanges suggests that consolidation could reduce the costs and complications of cross-border trading through such enhancements as a standardization of trading platforms. Yet regulatory, legal, and economic barriers to the creation of these exchanges may delay any benefits of consolidation.

Table of Content

Chapter: 1 Introduction6

The Four Key Factors9

Background10

Research Question12

Chapter 2: Methodology13

The 1985 White Paper14

Eurolist and Euroquote15

Eurolist20

Nordquote23

Chapter 3: Literature Review29

Stock Exchange Consolidation in Europe29

Advantages of Consolidation31

Compatible/Shared Trading Platforms31

Heightened Market Liquidity32

Critical Analysis of Reports33

Wise Men Report33

CESAME Report35

Giovanni Reports39

Chapter 4: Discussion and Analysis42

European Integration in General42

The Special Case of European Integration42

Milestones in European Integration45

The Legal Mechanisms of Integration46

The Institutions47

The Legal Doctrines48

The Principle of Mutual Recognition49

The Principle of Subsidiarity51

Cross-Listing and Transborder Trading52

Cross-Market Arbitrage57

Barriers to Consolidation67

Product Differentiation67

Legal and Regulatory Differences68

Information Costs and Home-Country Bias69

Fragmentation of Clearing and Settlement Systems69

A Comparison with U.S. Consolidations71

Chapter 6: Argumentative Analysis75

Stock Market Related Aspects75

Corporate Governance76

Public Saving and Pensions79

Clearance and Settlement82

Foreign Exchange Regulation85

Taxation86

Chapter 7: Case Study Analysis88

Chapter 8: Conclusion94

References98

Chapter: 1 Introduction

If Caesar had been more involved in supplies and portions than in slings and projectiles, a pot European Stock Exchange would likely be truth already. Sadly, it has taken another two 1000 years to find us in the place where we might, and only just might, have another opening to trial again.

Luckily this time, we are not reliant upon the infantry might of some impetrator's legions to force us into this, but I worry there is still a very good possibility of important bloodletting before there is any last success. Perhaps we could manage with a financially founded Caesar to force the issue? The key to the difficulty lies not in the reasoning of a lone exchange, or even its economic viability, but rather the political positioning of the managers of these exchanges. They arrive with all the luggage of customary and nationwide organisations, prepared to defend their heritage. Thus, they would appear to have little eagerness to relinquish their defended localized places except so forced.

 They will converse and argument and have all the concentrated propel of a bickering assembly of Roman senators, incapable to acquiesce on any thing but the smallest widespread denominator. So, will another Caesar bang their heads simultaneously, or will he be assassinated too? There are, although, good causes why Europe finds itself in this position. The European bourses and swaps have past notes going out with back ...