MEPs vote to outlaw Execution only trading.

[Trader333]

I have received a reply from IB which basically says that they dont see it as a problem and even if there was we have 2 years before it would be implemented. Here is a copy of the transcript


Dear Sir:

In case you have not received a response already, the announcement you have read is both premature and has not to our knowledge been formalized. Even if ultimately passed, the law will not become effective until 2005 or later. It is our understanding, based on consultation with regulators and legal council, that the likelihood of the proposed changes to the Investment Services Directive (ISD) -- the guiding framework for the securities industry — will not pass in its present form.

We don’t think there is anything to worry about, certainly not for another 2 years at least.

J Chait
Director Global Customer Services
Interactive Brokers

 

[FTSE Beater]

Cheers T333

I can now sleep easy....well for 2 years anyway

 

[seancass]

The EU

Teresa Villiers deserves a token of gratitude and I urge fellow members to send her an email of support. A short e mail or letter will secure her continued interest and vigilance if she feels that her efforts are appreciated - as indeed they are.

Look at her background and education. Clearly this is one very able and intelligent woman. Notwithstanding that she may have her own share portfolio, she has undeniably been a driving force in safeguarding private investors and traders from this political attack to their financial freedom. Her training as a barrister and the support and respect that she has gained in this matter has almost effected the removal of metres of red tape from the tight briefs of eurocrats in favour of applying the same firmly to their necks.

It is precisely this Euro tripe that it is fed to us from Brussels on a weekly basis in order to keep freeloaders in grand style that is driving so many businessmen (and traders) from these shores.

The IB response is encouraging, and citizens in the United States must be appreciating more and more their independence as they see ours gradually eroded.

The American Declaration of Independence ran, I believe, to a couple of pages of A4. The European Directive on the Importation of Duck Eggs runs to in excess of 200!!!!

Would the last one out of the United Kingdom please switch off the lights and tread carefully on the egg shells.

Sean
Seancass

 

[seancass]

Theresa Villiers

Reply received from Theresa Villiers to an e mail of thanks I sent to her.

Many thanks for your email. It has been a hard fight to get common sense to prevail in the European Parliament. Now that amendments to save execution only share dealing have got through the committee stage, I shall be working hard to get them adopted by the full session of the European Parliament. I will keep you informed of what happens on this crucial issue.

Best wishes

Theresa Villiers MEP


-----Original Message-----
Wrom: UCDDJBLVLMHAALPTCXLYRWTQTIPWIGYOKSTTZRCLBDXRQBGJSNBOHMKHJYF
Sent: None
To: Theresa Villiers
Subject: Contact from website


name: Sean Cassidy
comments:

Dear Theresa Villiers,

I congratulate you on your drive to ensure common sense prevails in the
current issue of direct access share trading. You deserve much gratitude for
your continued interest and vigilance for you have, undeniably, been a
driving force in safeguarding private investors and traders from political
attack to their financial freedom to manage their own affairs. You have
gained so much support and respect in this matter.

It is precisely this type of Euro interference and Nanny State mentality
that is driving so many businessmen(and traders) from these shores.

There are many people who are very grateful to you. Keep up the good work!
Yours sincerely,

Sean Cassidy
www.man-of-letters.co.uk



Please add me to your mailing list

Office of Theresa Villiers MEP
Conservative Member of the European Parliament for London

Room 14 E116
European Parliament
47-53 rue Wiertz
B-1047 Brussels
Tel: 00322 284 5792, Fax: 00322 284 9792.

Email: [email protected]
Website: www.theresavilliers.com

 

[Oldun]

Hi Sean,

Well and elegantly said.

I have e-mailed my expression of support. Hope all other members of this site will do the same.

Regards

 

[seancass]

Theresa Villiers

Thank you Oldun.

She's certainly a remarkable woman; determined too.

Best wishes,
Sean

 

[barjon]

You may be interested in the following reply received from my MEP

A draft directive from the EU Commission proposed a 'suitability test' for all stock-broking clients that would have effectively insisted that investors take advice, adding enormously to broking costs for small trades.

However, the Economic & Monetary Affairs Committee voted recently (by a small majority) to allow no frills stock-broking services - so called execution only - to continue throughout the EU. This amendment is subject to a further vote at the full parliamentary session later this month, but the committee vote is unlikely to be overturned.

So there you have it, safe in our time!!

good trading

jon

 

[Rognvald]

From Martin Callanan MEP (& about time too)

Dear Mr. Scott,

Thank you very much for your email, which I read with interest. I am indeed one of the MEPs in the North East Region.

I am delighted to inform you that the amendments, which my Conservative colleague and Economic and our Monetary Affairs Spokesman, Theresa Villiers, MEP drafted to save execution-only share dealing from the threat from EU red tape were adopted by the Economic Committee of the European Parliament in Strasbourg on 02 September.

These will exempt execution only and "direct offer" business from the "suitability test" (or "fact find") which could have made these no-frills services uneconomic. The result would have been to force all investors to seek advice from a broker whenever they wanted to buy or sell shares.

The vote is not the final word, however. Theresa will be working to ensure that these amendments are adopted by the full plenary session of the European Parliament, which will be voting on this on 25th September in Strasbourg. There was strong support for the amendments in the committee so we are optimistic that the vote in the plenary will go well.

The battle then moves to persuade the governments of the European Union's different Member States, including the UK Treasury, to accept these amendments.

Rest assured that I will continue to work to safeguard your right to take your own decisions on your own savings. I attach an article on the vote, published in the Daily Telegraph on September 3.

Thank you for taking the time to write to me, bringing your concerns to my attention.

Best regards,

Martin Callanan, MEP

 

[jls483]

[Ooops, wrote this before noticing the thread went onto a second page! - sorry. I don't see it as "the perfect letter", but the best I coud do in a couple of minutes and thought it would be something to get the ball rolling. However, from reading page 2 of the thread, it would appear a little unnecesary].


Dear MEP,

I have heard through the press that the EU is thinking of passing a law to prevent individuals buying shares without advice from a so-called “professional”.

As we are nowhere near April 1st, I must assume that there is some truth in this story.

I can understand passing legislation that an execution only stock broker should check that a client knows what they are doing and are fully aware of the possible consequences before opening an account, but to expect it to be done for every trade is just bizarre!

Not only will this make execution-only stock broking exceptionally expensive, but it would be completely impractical. I make 20 or 30 trades a day and it would be impractical for me to get a “professional” to check that they are sensible.

And perhaps the most important point of all is what makes the broker more professional than me. The so-called financial experts have lost millions of peoples money, whilst me and lots of others like me have continued earning a living from it. It would be ridiculous for me to have to check my trades with them.

The stock market is a wild fluctuating thing, which nobody can predict. Because it is a market with buyers and sellers every share that exists will be priced at a level so that it has a 50% chance of rising and a 50% chance of falling. If the company was in great shape and the price should be higher and it would be bought raising the price. Similarly if it was about to collapse then everybody would sell it and the price would fall to an appropriate level. Based on this you could argue that any share is worth buying. It is not possible for an expert to say you should buy this share and you should not buy this one.

All you can do is make sure each customer understands what they are risking and how easily they can lose their money.

Please could you do whatever you can to make sure this legislation goes no further.

Regards,

John.

 

[Simon]

It is not possible for an expert to say you should buy this share and you should not buy this one.

What if the expert does say this? Presumably you're then judged incompetent & are prevented from taking a position...

 

[jonnyy40]

Yesterday's vote was carried in our favour according to e-mail just received from Neil Parish (con. mep.)

 

[seancass]

News from Theresa

Herewith, my reply to a communication received today from Theresa Villiers.

Friday 26th September 2003

Dear Theresa,

On behalf of traders and investors who rely on the freedom to trade the financial markets for their living, I should like to congratulate you on your tenacity and indomitable spirit in seeking to secure a victory for sheer common sense. Well done!

Best wishes,
Your sincerely,
Sean Cassidy
----- Original Message -----
Wrom: OHMKHJYFMYXOEAIJJ
To: Theresa Villiers
Sent: Friday, September 26, 2003 2:33 PM
Subject: MEP scores vital victory on low cost share deals


I am delighted to inform you that at around 11:30am yesterday, the amendments which I had drafted to save execution-only share dealing from the threat of EU red tape were adopted by the European Parliament in Strasbourg.

This victory was vital in the fight to safeguard execution only and 'direct offer' business from suitability tests (or "fact find"). I am very pleased that investors will be able to continue to buy these no-frills services without being obliged to take advice from a broker.

The European Parliament's role is finished for the time being and the debate now moves to the Council of Ministers, where Europe's finance ministers must also reach an agreement on this issue.

Only if the amendments adopted yesterday are also accepted by finance ministers will the threat to execution only be lifted. I will do all I can to put pressure on the Treasury to defend the right of informed investors to benefit from execution only share dealing.

Thanks for your support for my campaign to save execution-only

Yours sincerely
Theresa Villiers MEP


Office of Theresa Villiers MEP
Conservative Member of the European Parliament for London

Room 14 E116
European Parliament
47-53 rue Wiertz
B-1047 Brussels
Tel: 00322 284 5792, Fax: 00322 284 9792.

Email: [email protected]
Website: www.theresavilliers.com

 

[ES0]

I have just read through all your theads this evening and am shocked that such a thing is even being considered!!! I simly can not see how the government can enforce this and surely if two-thirds of traders are using market brokers for execution only, even if they are only paying the minimal fee they must been big money for the market brokers, so as i see it they should, if the situation occurs, offer some sort of basic advisory service with a clause in small print to annul themselves of any responsibility. So basically worming there way round the system (nudge, nudge, wink, wink) The only other way round the situation would be for small independant traders to soley use american brokers, they can tell EU brokers that they can not offer execution only services but I simly can not see how they can tell me and enforce it, that I can not put my money with an american broker and trade from home on the internet. POWER TO THE SMALL MAN DAY TRADER!!!

 

[ES0]

The string pullers are realizing that some of the little people are taking more out of the system than the system is taking back off the little people. They want to keep control of the wage slave 9 to 5 tax payer.