ABSTRACT
This chapter analyses the governance of securities markets in the EU from the drafting of the FSAP in 1999 onwards. It first maps the institutional framework for the regulation and supervision of securities trading, both in the EU and internationally, arguing that the latter is less developed than the former. It should, however, be noted that, until the late 1990s, the EU framework was not particularly robust, though it underwent a significant reform following intense legislative activity in the early 2000s. The second part of the chapter analyses the functioning of the Lamfalussy framework and the policy-making processes of the four so-called Lamfalussy directives – named after the framework through which they were agreed and implemented – the Prospectus Directive (2003), the Market Abuse Directive (2003), the Transparency Directive (2004) and the Markets in Financial Instruments Directive (MiFID) (2004).
