Since 2014 there has been a regulation on the settlement of stock and securities transactions (CSDR Rule 909/2014) drawn up and passed by the EU Commission and the EU Parliament. Above all, this regulation strengthens the rights of retail investors and obliges financial service providers such as banks, brokers, market makers to buy and deliver shares/securities purchased by the investor (settlement and deliver). Actually a matter of course.
The fact is, regulation is needed because this basic principle of a free market – buy and deliver – is being violated to a significant extent! The ordinance obliges the seller of shares to procure the shares and deliver them to the buyer within a period of time. Otherwise, the buyer receives compensation and sanctions for the service provider follow in the event of repeated failure to deliver. This rule has not been applied since 2014 and has been postponed again and again at the instigation of the financial service providers. Even the ECB, the EU Commission and the European Securities and Markets Authority ESMA now want to postpone this regulation indefinitely.
THIS IS INACCEPTABLE!
Stocks are investments, pensions, savings, etc. This is about retail investors like you and me, who are exposed to an asymmetric risk as a result! Failure-To-Deliver results in an oversupply of non-existent synthetic shares, which suppresses the price and thus causes the stocks to fall in value. Supply and demand as the basic principle of all pricing in free markets are thus undermined.
I therefore call for support of this petition to the EU Parliament, which can now be signed publicly. It is essential that the ECB, the EU Commission and the European Securities and Markets Authority ESMA finally comply with this regulation!
This is a UNIQUE chance for us to be heard. We could force the European Parliament to debate about fair market conditions publicly in its plenar sessions.
Yes, it is the European Parliament, but as stock markets are globally the implementation of this rule will have a huge impact for all investors all over the world.
Yes, it is open to all people all over the world to support this petition. It‘s already the most supported EU petition this year. But we can go far beyond! We are millions of retail investors. Lets make this the biggest petition in EU history!
Please sign and share! Thank you!
(https://www.europarl.europa.eu/petitions/en/petition/content/0775%252F2022/html/Petition- No-0775%252F2022-by-A.P%2528German%2529-on-the-enforcement-of-Regulation-%2528EU%2529-No-909%252F2014-on-improving-securities-settlement-in-the-European- Union and on central securities depositories)
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