A comparison of the development and common objectives of the legislation of the capital markets of the USA and the EU from the beginning of the 20th century

Authors

DOI:

https://doi.org/10.54201/iajas.v2i2.29

Keywords:

capital market, investment services, investor protection, prudential requirements, European Union

Abstract

This paper deals with the historical development of the legislation of the capital markets of the USA and the EU. It is divided into two parts: the general part contains a brief history of the development of the capital market in this context and I identify several milestones that had a significant impact on the development of the capital markets. The special part, first dealing with the development of the legislation of the capital market in the USA from the Great Depression to date and further by the development of the EU capital market from the foundation of the European Economic Community in 1957 to the implement of the MIFID 2 Directive and MIFIR Regulation, concludes with a comparison of both legislative systems and their common objectives and the interests pursued by individual regulations. The main sources for this paper are in particular the relevant laws regulating the area in question, Czech and foreign scientific papers on the given topic and online economic platforms.

References

Allen, F., & Gale, D. (2007). Understanding financial crises. Oxford University Press.

Bodie, Z., Kane, A., & Marcus, A. J. (2014). Investments (10th global edition). McGraw-Hill Education.

Bouvier, J. (2022, August 13). Rothschild family. Encyclopedia Britannica. Online: https://www.britannica.com/topic/Rothschild-family

Bumiller, E. (2002, July 31). Corporate Conduct: The President. Bush Signs Bill Aimed at Fraud In Corporations. The New York Times. Online: http://bit.ly/3TYFRt8

Casey, J-P., & Lannoo, K. (2009). Origins and structure of MiFID. In The MiFID revolution (pp. 26–44). Cambridge University Press. https://doi.org/10.1017/cbo9780511770470.004

de Haan, J., Oosterloo, S., & Schoenmaker, D. (2012). Financial Markets and Institutions. A European Perspective (2 ed.). Cambridge University Press. https://doi.org/10.1017/cbo9781139198943

Hsu, S. (2017). Financial Crises, 1929 to the Present (2nd. ed.). Edward Elgar. https://doi.org/10.4337/9781785365171

Husták, Z., & Smutný, A. (2016). Investiční služby a nástroje po rekodifikaci. C.H. Beck.

Liška, V., & Gazda, J. (2004). Kapitálové trhy a kolektivní investování. Professional Publishing.

Mishkin, S. F., & Eakins, G. S. (2016). Financial Markets and Institutions (8 ed.). Pearson Education Limited.

Musílek, P. (2011). Trhy cenných papírů. Ekopress.

Pavlát, V. et al. (2003). Kapitálové trhy. Professional Publishing.

Pearce, R., & Barnes, S. (2006). Raising venture capital. John Wiley & Sons Ltd. https://doi.org/10.1002/9781118673416

Rejnuš, O. (2014). Finanční trhy (4. aktualizované a rozšířené vydání). Grada Publishing.

Sergakis, K. (2018). The Law of Capital Markets in the EU. Disclosure and enforcement. Red Globe Press.

Týč, V. (2010). Základy práva Evropské unie pro ekonomy (6. vydání.). Leges.

Valiante, D. (2018). CMU and The Deepening of Financial Integration. In D. Busch, E. Acgouleas, & G. Ferrarini (Eds.), Capital Markets Union in Europe (1 ed.) (pp. 2.01 – 2.43) Oxford University Press. https://doi.org/10.1093/oso/9780198813392.001.0001

Veselá, J. (2019). Investování na kapitálových trzích (3. Rozšířené a ktualizované vydání). Wolters Kluwer.

Legal sources

First Council Directive of 9 March 1968 on coordination of safeguards which, for the protection of interests of members and others, are required by Member States of companies within the meaning of the second paragraph of Article 58 of the Treaty, with a view to making such safeguards equivalent throughout the Community (68/151/EEC)

Second Council Directive of 13 December 1976 on coordination of safeguards which, for the protection of the interests of members and others, are required by Member States of companies within the meaning of the second paragraph of Article 58 of the Treaty, in respect of the formation of public limited liability companies and the maintenance and alternation of their capital, with a view to making such safeguards equivalent (77/91/EEC)

Third Council Directive of 9 October 1978 based on Article 54 (3) (g) of the Treaty concerning mergers of public limited liability companies (78/855/EEC)

Fourth Council Directive of 25 July based on Article 54 (3) (g) of the Treaty on the annual accounts of certain types of companies (78/660/EEC)

Council Directive of 5 March 1979 coordinating the conditions for the admissions of securities to official stock exchange listing (79/279/EEC).

Council Directive of 17 March 1980 coordinating the requirements for the drawing up, scrutiny and distribution of the listing particulars to be published for the admission of securities to official stock exchange listing (80/390/EEC).

Sixth Council Directive of 17 December 1982 based on article 54 (3) (g) of the treaty, concerning the division of public limited liability companies (82/891/EEC)

Seventh Council Directive of 13 June 1983 based on the article 54 (3) (g) of the Treaty on consolidated accounts (83/349/EEC)

Eighth Council Directive of 10 April 1984 based on article 54 (3) (g) of the Treaty on the approval of persons responsible for carrying out the statutory audits of accounting documents (84/253/EEC)

Council Directive of 20 December 1985 on the coordination of laws, regulations and administrative provisions relating to undertakings for collective investment in transferable securities (UCITS) (85/611/EEC)

Council Directive of 22 March 1988 amending, as regards the investment policies of certain UCITS, Directive 85/611/EEC on the coordination of laws, regulations and administrative provisions relating to undertakings for collective investments in transferable securities (UCITS) (88/220/EEC)

Council Directive 93/22/EEC of 10 May 1993 on investment services in the securities field

European Parliament and Council Directive 95/26/EC of 29 June 1995 amending Directives 77/780/EEC and 89/646/EEC in the field of credit institutions, Directives 73/239/EEC and 92/49/EEC in the field of non-life insurance, Directives 79/267/EEC and 92/96/EEC in the field of life assurance, Directive 93/22/EEC in the field of investment firms and Directive 85/611/EEC in the field of undertakings for collective investment in transferable securities (UCITS)

Directive 2001/107/EC of the European Parliament and of the Council of 21 January 2002 amending Council Directive 85/611/EEC on the coordination of laws, regulations and administrative provisions relating to undertakings for collective investment in transferable securities (UCITS) with a view to regulating management companies and simplified prospectuses.

Directive 2001/108/EC of the European Parliament and of the Council of 21 January 2002 amending Council Directive 85/611/EEC on the coordination of laws, regulations and administrative provisions relating to undertakings for collective investment in transferable securities (UCITS), with regard to investments of UCITS

Directive 2004/39/EC of the European Parliament and of the Council of 21 April 2004 on markets in financial instruments amending Council Directives 85/611/EEC and 93/6/EEC and Directive 2000/12/EC of the European Parliament and of the Council and repealing Council Directive 93/22/EEC

Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments and amending Directive 2002/92/EC and Directive 2011/61/EU

Regulation (EU) No 600/2014 of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments and amending Regulation (EU) No 648/2012

Directive 2009/65/EC of the European Parliament and of the Council of 13 July 2009 on the coordination of laws, regulations and administrative provisions relating to undertakings for collective investment in transferable securities (UCITS)

Council Directive 93/6/EEC of 15 March 1993 on the capital adequacy of investments firms and credit institutions

Regulation (EU) No 575/2013 of the European Parliament and of the Council of 26 June 2013 on prudential requirements for credit institutions and investment firms and amending Regulation (EU) No 648/2012

Downloads

Published

2022-12-18

How to Cite

Datinský, P. (2022). A comparison of the development and common objectives of the legislation of the capital markets of the USA and the EU from the beginning of the 20th century . Institutiones Administrationis - Journal of Administrative Sciences, 2(2), 61–77. https://doi.org/10.54201/iajas.v2i2.29