Hostname: page-component-78c5997874-s2hrs Total loading time: 0 Render date: 2024-11-13T03:58:32.734Z Has data issue: false hasContentIssue false
  • English
  • Français

The European New Markets For High-Growth Companies

Published online by Cambridge University Press:  17 February 2009

Santiago Hierro Anibarro
Santiago Hierro Anibarro
Affiliation:
Professor of Law, University of Alcalá, Alcalá de Henares, Spain.
Get access

Extract

The 1990s witnessed the European début of a series of securities markets for high-growth companies adopting as their regulatory model the National Association of Securities Dealers Automated Quotation (NASDAQ) market in the USA. These markets are generally known as New Markets.

Type
Articles
Information
European Business Organization Law Review (EBOR) , Volume 2 , Issue 2 , June 2001 , pp. 365 - 400
Copyright
Copyright © T.M.C. Asser Press and the Authors 2001

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

1 Bibliography on the concept of the over-the-counter or off-exchange market is not extensive, as is made plain by the few authors who have treated the subject: see Stenzel, S., Ausserbörslicher Aktienhandel. Teilband 1. Umfang und Ursachen (Berlin 1995) p. 32Google Scholar. The same is true for the parallel market, although Schmidt, , Vorteile und Nachteile eines integrieten Zirkulationsmarktes für Wertpapiere gegenüber einem gespaltenem Effektenmarkt (Brussels 1977) p. 336Google Scholar, offers some benchmarks with which to essay the delimitation of the term's reference.

2 See Corallini, S./ Moroni, R., Il mercato ristretto dei valori mobiliari (Milan 1983) p. 18Google Scholar; Nieto, U., El Mercado de Valores. Organización y funcionamiento (Madrid 1993) p. 81.Google Scholar

3 See Parra, A. Madrid, “Repercusión de las nuevas tecnologías en la reforma del mercado de valores”, 73 Revista de Derecho Bancario y Bursátil (1999) 31, 56.Google Scholar

4 See generally Lee, R., What is an Exchange? (Oxford 1998) pp. 1 et seq.Google ScholarPubMed

5 See Hazen, T.L., The Law of Securities Regulation (St. Paul, Minn. 1996) pp. 1Google Scholar et seq. In addition to the securities markets, investors may look to the commodities markets, although generally those are regulated by the Commodity Futures Trading Commission: see Loss, L./ Seligman, J., Fundamentals of Securities Regulations (Boston 1995) p. 600.Google Scholar

6 See Loss, L./ Seligman, J., Securities Regulation, vol. VI (Boston 1990) pp. 2787–2795.Google Scholar

7 See generally Loss, L./ Seligman, J., Securities Regulation, supra n. 6, vol V, pp. 2578–2579Google Scholar. Regarding the pre-NASDAQ History of OTC trading, see Anibarro, S. Hierro, “La Asociación Nacional de Intermediarios de Activos Financieros (NASD) y el mercado NASDAQ”, 79 Revista de Derecho Bancario y Bursátil (2000) 93, 118Google Scholar et seq.; Simon, M.J./ Colby, R.L.D., “The National Market System for Over-the-Counter Stocks”, 55 The George Washington Law Review (1986) 17, 19–34Google Scholar; Burns, A.I., “Over-the-Counter Market Quotations: Pink, Yellow, Green and White Sheets- A Gray Area in the Law of Evidence”, 52 Cornell Law Quarterly (1967) 262, 262 et seq.Google Scholar

8 Regarding self-regulation in the securities industry, see generally Cary, W.L., “Self-Regulation in the Securities Industry”, 49 American Bar Association Journal (1963) 244Google Scholar; Chepucavage, P.J., “Self-Regulation in a National Market Environment”, 13 Securities Law Review (1981) 313Google Scholar; Frey, A.H., “Federal Regulation of the Over-the-Counter Securities Market”, 106 University of Pennsylvania Law Review (1957) 1CrossRefGoogle Scholar; Karmel, R.S., “Securities Industry Self-Regulation -Tested by the Crash”, 45 Washington and Lee Law Review (1988) 1297Google Scholar; Miller, S.S., “Self-Regulation of the Securities Markets: A Critical Examination”, 42 Washington and Lee Law Review (1985) 855Google Scholar; Moylan, J.J., “The Place of Self-Regulation in the Securities Industry”, 6 Securities Regulation Law Journal (1978) 49Google Scholar; Ratner, D.L., “Self-Regulatory Organizations”, 19 Osgoode Hall Law Journal (1981) 368Google Scholar; Smythe, M.K., “Government Supervised Self-Regulation in the Securities Industry and the Antitrust Laws: Suggestions for an Accommodation”, 17 Securities Law Review (1985) 459.Google Scholar

9 See Hazen, supra n. 5, at 2 and 452.

10 The expression “free market” is a French coinage that soon became popular throughout Europe, see Viterbo, C.B., “Il mercato libero di borsa i contratti a premio”, in: Studi di Diritto Commerciale in onore di Cesare Vivente (Rome 1931) p. 723.Google Scholar

11 See infra sect. 3.2.1.

12 The banning of the free market was usually accompanied by its incorporation into the exchanges, although as there was little dealing in its stocks, trading declined to the point of virtual disappearance: see Grenier, R., Le second marché: Règles et Fonctionnemet (Paris 1988) pp. 68–69.Google Scholar

13 See Wilmot, T., Inside the Over-the-Counter Market in the UK (Westport/London 1985) p. 7.Google Scholar

14 See infra sect. 3.2.1.

15 It is still difficult to define SME satisfactorily, see Ratz, K., Innovationsfinanzierung für kleine und mittlere Unternehmen. Ergebnisse eines internationalen Erfahrungsautausches (Vienna 1988) p. 9Google Scholar; recently, see Martin, T.A., “Der Neue Markt an der Frankfurter Wertpapierbörse und Probleme mittelständischer Unternehmen bei der Finanzierung über Eigenkapitalzuführung”, 5 Die Aktiengesellschaft (1998) 221, 222–223Google Scholar. It is customary to consider as SME any company with fewer than 500 workers, see González-Estefani, J., “La problemática de la pequeña y mediana empresa en España”, 24 Anales de la Academia Matritense del Notariado (1981) 7, 9.Google Scholar

16 See Bannock, G./ Doran, A., Going Public. The Markets in Unlisted Securities (London 1987) p. 73.Google Scholar

17 See Calatayud, F. Pérez, “Los mercados de valores desde la perspectiva de una zona off-shore”, 154 Noticias de la Unión Europea (1997) 53, 54.Google Scholar

18 See generally Wilmot, supra n. 13, at 10, and Grenier, supra n. 12, at 31 et seq.

19 See Commission of the European Communities, Communication from the Commission European capital markets for Small and Medium-sized Enterprises: prospects and potential obstacles to progress, COM (97) 187 final, p. 5.

20 See Loll, L.M./ Buckley, J.G., The Over-the Counter Securities Markets (Englewood Cliffs, New Jersey 1981) p. 167.Google Scholar

21 See Wilmot, supra n. 13, at 8; Bannock/ Doran, supra n. 14, at 11; Ortega, M.I., El mercado bursátil en España: un análisis de su dimensióon (Madrid 1998) p. 182Google Scholar; Buonomo, D. D., “Borsa valori e Mercato ristretto. Le condizioni di ammissione”, Banca Borsa e Titoli di Credito (1985) 365, 378.Google Scholar

22 See Hazen, supra n. 5, at 2 and 452. Since 1990 the Nasdaq Stock Market is the world's largest stock market in dollar volume terms, see NASD Press Release -06/06/1999. Nasdaq Becomes the World's Biggest Stock Market by Dollar Volume.

23 See Pérez Calatayud, supra n. 17, at 55.

24 See Leblanc, D., “Nouveaux financements pour les valeurs de croissance”, 566 Banque (1996) 16.Google Scholar

25 See infra sect. 4.2.1.

26 See Izquierdo, M., Los Mercados de valores en la CEE (Derecho Comunitario y adaptación al Derecho Español (Madrid 1992) pp. 185–186.Google Scholar

27 A market maker is responsible for making “two way” bids on the securities for which it makes a market. As such, the market maker must be willing to stand behind these quotations. The SEC rules require that the market maker is financially able to fulfil these obligations, see Hazen, supra n. 5, at 484.

28 See Veale, S. R. (Ed.), Stocks, Bonds, Options, Futures. Investments and their Markets (New York 1987) p. 240.Google Scholar

29 See generally OICV/ IOSCO, The Influence of Market Makers in the Creation of Liquidity. Report by the Emerging Markets Committe of the International Organization of Securities Commissions (May 1999) especially pp. 8 et seq.Google Scholar

30 See Andrés, A. Sánchez, “La nueva Iegislación del Mercado de valores (Fundamentos económicos y jurídicos para la regulación de la materia)”, in: Calero, F. Sánchez (Coord.), Perspectivas actuates del Derecho Mercantil (Pamplona 1995) p. 111.Google Scholar

31 See Poser, N.S., International Securities Regulation (Boston 1991) pp. 46–47.Google Scholar

32 See Salinas, C./ Kirchner, P., La Reforma de la Ley del Mercado de Valores (Valencia 1999) p. 94.Google Scholar

33 The Small Order Execution System (SOES). Through this system, the NASD uses its computers to execute orders to trade 1000 shares or less, see Solomon, L.D./ Corso, L., “The Impact of Technology on the Trading of Securities: The Emerging Global Market and the Implications for Regulation”, 24 The John Marshall Law Review (1991) 299, 315.Google Scholar

34 EASDAQ Rule Book, rule 7301(b).

35 See Veale, supra n. 5, at 240. In contrast to the exchange specialist system, in the OTC market at least two dealers must choose to make markets in OTC stocks, see Bronfman, C./ Lehn, K./ Schwartz, R.A., “The SEC's Market 2000 Report”, 19 The Journal of Corporation Law (1994) 523.Google Scholar

36 See Wolfson, N./ Russo, T.A., “The Stock Exchange Specialist: An Economic and Legal Analysis”, Duke Law Journal (1970) 707Google Scholar. For more information about the specialist, see Loss/ Seligman, supra n. 5, at 605-606.

37 Regarding the NASDAQ market, see Hazen, supra n. 5, at 487.

38 See Oesterle, D.A./ Winslow, D.A./ Anderson, S.C., “The New York Stock Exchange and Its Out Moded Specialist System: Can the Exchange Innovate to Survive?”, 17 The Journal of Corporation Law (1992) 223, 223 et seq.Google Scholar

39 See Hazen, supra n. 5, at 489; Cochrane, J.L./ McNamara, B./ Shapiro, J.E./ Simon, M.J., “The Structure and Regulation of the New York Stock Exchange”, 18 The Journal of Corporation Law (1992) 57, 72Google Scholar. Against: Macey, J./ Kanda, H., “The Stock Exchange as a Firm: The Emergence of Close Substitutes for the New York and Tokyo Stock Exchanges”, 75 Cornell Law Review (1990) 1007, 1026–1027.Google Scholar

40 See Fischel, D.R., “Organized Exchanges and the Regulation of Dual Class Common Stock”, 54 University of Chicago Law Review (1987) 119, 126CrossRefGoogle Scholar; Oesterle, D.A., “On the Business of Defending NYSE Specialists”, 18 The Journal of Corporation Law (1992) 79, 88Google Scholar; Macey/ Kanda, supra n. 39, at 1027 et seq.

41 See Hazen, supra n. 5, at 490.

42 See Wolfson/ Russo, supra n. 36, at 745.

43 Specialists are subject to special capital requirements, and are limited in their dealings with issuers of the particular stocks, large institutional investors and other broker-dealers, see Hazen, supra n. 5, at 490. For more information, see Wolfson/ Russo, supra n. 36, at 727 et seq.

44 Regarding the NASDAQ market, see Fischel, supra n. 40, at 126.

45 Instead, the London Stock Exchange based its trading system, known as Stock Exchange Automated Quotations (SEAQ), on the NASDAQ system. The London Stock Exchange had to implement several changes to adopt not a stock exchange trading system, but rather a system for over-the-counter trading. Most important, the NYSE attempted to prevent its members from trading in London in the 200 stocks listed on both exchanges during the one hour of the day when both exchanges are open. The NYSE's reasoning was that SEAQ had become an over-the-counter market, not an exchange, therefore NYSE Rule 390, which prohibits members from doing any trading as principal in NYSE-listed common stock over the counter, applied to these trades: see Poser, supra n. 31, at 41 et seq. Besides SEAQ, a limited system was created in 1985, known as SEAQ International (SEAQI), for off-exchange trading, particularly in foreign equities: see Houghton, K.J., “The Economic and Political Debate Over the Regulation of Off-Exchange Securities Trading in the European Community's Single Financial Market”, 32 Virginia Journal of International Law (1992) 747, 766–769Google Scholar, and Stenzel, supra n. 1, at 39.

46 See Haelterman, A./ Duplat, M./ Hallake, M., “EASDAQ: the Pan-European Stock Market”, 25 International Business Lawyer (1997) 503, 504Google Scholar. The EASDAQ market was also inspired by the fact that NASDAQ has its headquarters in Washington: see Yassukovich, S., “EASDAQ: Europe's Stock Market for Growth Companies”, 21 Fordham International Law Journal (1997) 397, 399.Google Scholar

47 See Olislaegers, M./ Haelterman, A./ Verbeke, L.C., “Easdaq market opens for business”, 16 International Financial Law Review (1991) 14, 14–17.Google Scholar

48 See Ratner, supra n. 8, at 369.

49 See Canseco, J.E., “El fenómeno Bolsa”, in: J.L. Sánchez Fernández de, Valderrama, (dir.), Curso de bolsa y mercados financieros (Barcelona 1996) pp. 218 et seq. and p. 243.Google Scholar

50 See Steil, B., “Equity Trading IV: The ISD and the Regulation of European Market Structure”Google Scholar, in: Steil, B. et al. , The European Equity Markets. The State of the Union and an Agenda for the Millennium (London 1996) pp. 115–116.Google Scholar

51 See Alonso Ureba, A. J., “Mercados regulados de valores”, 65 Perspectivas del Sistema Financiero (1999)53, 58.Google Scholar

52 In recent years there has been a progressive officialization of the stock exchanges' second markets, see Gollier, J.-M., “La notion de bourse, de marché secondaire et de marché réglementé”, in: Thossens, J.-F., (Coord.), La réforme des marchés et des intermédiaires financiers (Brussels 1997) pp. 117–118.Google Scholar

53 See Stenzel, supra n. 1, at 35 et seq. It was the registration of automated trading systems that forced the SEC to present for the first time an interpretation of how the “exchange” definition should be understood, see Lee, supra n. 4, at 281. This criterion was later employed to determine the regulatory status of trading systems: see Zufferey, J.-B., Regulation of Trading Systems on Financial Markets (London 1997) p. 235.Google Scholar

54 See Henckel-Donnersmarck, H., “<Electronic Communication Networks> und <Alternative Trading Systems> – Herausforderung für die Aufsichtsbehörden”, in: Weber, R.H. (Hrsg.), Neuere Entwicklungen im Kapitalmarktrecht (Zurich 2000) pp. 262.Google Scholar

55 See Houghton, supra n. 45, at 749 and 757; Macey/ Kanda, supra n. 39, at 1052. See generally: Solomon/ Corso, supra n. 33, at 320 et seq.; Bel, J. de, “Automated Trading Systems and the Concept of an ‘Exchange’ in an International Context Proprietary Systems: A Regulatory Headache!”, 14 University of Pennsylvania Journal of International Business Law (1993) 169, 169Google Scholar et seq. For Europe, see generally, Pagano, M./ Steil, B., “Equity Trading I: The Evolution of European Trading Systems”Google Scholar, in: Steil, supra n. 49, at 43-45; Schwark, E., “Börsen und Wertpapierhandelsmärkte in der EG”, 7 Wertpapier-Mitteilungen (1997) 293, 299–300.Google Scholar

56 The vertical segmentation was considered to be necessary for the most advanced and sophisticated securities markets: see Wilmot, supra n. 13, at 110.

57 From this point of view, the problem of the second-tier markets has its roots not so much in the issuing companies as in the search for a way to adapt the stock exchange model to the particular characteristics of this category of company: see Madej, A., “El relanzamiento del <second marché> parisino”, 10 Bolsa de Madrid (1993) 36, 41Google Scholar. The adaptation was based solely on relaxing the admission requirements and the obligations imposed on listed companies. This did not improve the financing of SMEs, and in fact even reduced investor protection: see Andrés, A. Sánchez, “La sociedad anónima y el mercado (observaciones al paso de una reforma indebida)”, 14 Revista de Derecho de Sociedades (2000) 13, 17Google Scholar. It was also useless as a means of achieving the liquidity necessary to guarantee the survival of any kind of securities market: see Zapata, F.J., “Admisión, suspensión y exclusión de valores”, in: Ureba, A. Alonso/ Martínez-Simancas, J. (dir.), Instituciones del Mercado Financiero, vol. VII (Madrid 1999) p. 4433.Google Scholar

58 Among others, the following have been pointed out: insufficient analysts and little market information of the kind that might have guaranteed the market's liquidity (United Kingdom); investor aversion to risk and resistance on the part of the entrepreneurs themselves to finance through shares' emissions, with the consequent and foreseeable dilution of control (Germany); high level of public debt and stagnation of the savings generated by the economy in risk-free Treasury bonds (Spain); geographical dispersion of trading floors (in Italy the mercatto ristretto is running locally in Milan, Rome, Turin, Genoa, Florence, and Naples); promotion of listing companies to the main market (France): see Pérez Calatayud, supra n. 17, at 55.

59 See infra sect. 4.2.3.3.

60 See Neill, D. O', “London Stock Market Starts up. The Alternative Investment Market is devised, like NASDAQ, to succeed through regulation”, 18 The National Law Journal (1995) Cl, C2.Google Scholar

61 See Andreen, M., “How good is the Stock Exchange's AIM?”, 139 Solicitors Journal (1995) 684Google Scholar; Steadman, T., “The Alternative Investment Market: The Regulatory Issues”, 4 Journal of Financial Regulation and Compliance (1996) 125, 126.CrossRefGoogle Scholar

62 See Abrams, C., “The Alternative Investment Market”, 2 European Financial Services Law (1995) 147.Google Scholar

63 See “Exchange launches techMARK for high-technology companies”, 20 The Company Lawyer (1990) 330.Google Scholar

64 See Hansen, H., “Der Neue Markt”, 12 Die Aktiengesellschaft-Report (1996) 539.Google Scholar

65 See Frankfurt, Wertpapierbörse, Infoordner Neuer Markt. 1.3. Warum Transparenz und wie?, p. 6.Google Scholar

66 The decision to create the Nouveau Marché was taken by the Société des Bourses Françaises (the “SBF”) acting in line with the conclusions of the Bruno Roger/ Pierre Faurre Report, one of which advocated the establishment of an autonomous market aimed at companies with a high growth potential: see Leblanc, D., “Nouveaux financements pour les valeurs de croissance”, 566 Banque (1996) 16.Google Scholar

67 See Ripert, G./ Roblot, R., Traité de Droit Commercial, t. II (Paris 1996) p. 83.Google Scholar

68 The organization of the Nouveau Marché was initially entrusted to the New Market's Board, the Sociéte du Nouveau Marché – until recently a subsidiary wholly owned by the SBF (now part of Euronext Paris SA) – which was given 20 million francs of start-up capital. However, a recent change in the French securities markets organizational structure (prior to the appearance of Euronext) led to the fusion of the four market operators (SBF, MATIF SA, MONEP SA and the SNM itself) into a single entity, Paris Bourse SBF SA. This company combines all the activities of securities dealing, derivatives and operations, although each market still preserves its own regulation and structure.

69 Règles de Fonctionnements, art. 1-1-3.

70 Delibera CONSOB, de 27 gennaio 1999, n. 11808.

71 Delibera 23 gennaio 1997, n. 10464 della Consob.- Approvazione del progetto del Consiglio di borsa concernente la costituzione della società per azioni denominata “Borsa italiana s.p.a.”, avente per oggetto la gestione della borsa valori, del mercato ristretto e del mercato di borsa per la negoziazione degli strumenti finanziari previsti dall'art. 1, comma 1, lettere f) ed l) del d.lgs. 23 luglio 1996, n. 415.

72 Regolamento del Nuovo Mercato Organizzato e Gestito Dalla Borsa Italiana S.p.A., art. 1.2.3.

73 See Ortega, M.I., El mercado bursátil en España: Un análisis de su dimensión (Madrid 1998) p. 187.Google Scholar

74 See Abellá, J., La ordenación del Mercado de valores: un ordenamiento dinámico (Madrid 1995) p. 194.Google Scholar

75 BOE, no. 312, de 30 de diciembre de 1999, pp. 46334-46335.

76 Instrucción Operativa de la Sociedad de Bolsas no. 4/2000.

77 See Arranz, G., “Creación de un segmento especial de negociación en las Bolsas de Valores denominados <Nuevo Mercado>”, 113 Derecho de los Negocios (2000) 105, 106.Google Scholar

78 Orden de 22 de diciembre de 1999 por la que se crea un segmento especial de negociación en las Bolsas de Valores denominado “Nuevo Mercado” y se modifican los requisitos de admisión a Bolsa, disposición primera, apartado 3.

79 See Finn, G., “Institutions in NASDAQ's Competing Dealer Markets”, in: Schwartz, R.A. (ed.), Global Equity Markets: Technological, Competitive, and Regulatory Challenges (Chicago 1995) p. 48Google Scholar; Hallmann, E., “Institutionelle Investoren als Zielgrupe für mittlere Wachtumsunternehmen an der Easdaq”, 1 Zeitschrift füur das gesamte Kreditwesen (1998) 24, 24Google Scholar et seq. These kind of markets are generally dominated by sophisticated institutional investors: see Houghton, supra n. 45, at 748.

80 See Schmidt, H. (dir.), Special stock market segments for small company shares: Capital raising mechanism and exit route for investors in new technology-based firms (Luxembourg: Commission of the European Communities 1984) p. 449.Google Scholar

81 See Martí, J., “Pasado, presente y futuro del capital-riesgo en España”, 67 Perspectives el Sistema Financiero (1999) 21, 28–29.Google Scholar

82 See Roquette, A.J., “New Developments relating to the Internalization of the Capital Markets: A Comparison of Legislative Reforms in the United States, the European Community, and Germany”, 14 University of Pennsylvania Journal of International Business Law (1994) 565.Google Scholar

83 See Peters, A.L./ Feldman, A.E., “The Changing Structure of the Securities Markets and the Securities Industry: Implications for International Securities Regulation”, 19 Michigan Yearbook International Legal Studies (1988) 19, 21Google Scholar et seq.; D.E. van, Zandt, “The Regulatory and Institutional Conditions for an International Securities Market”, 32 Virginia Journal of International Law (1991) 47, 60Google Scholar et seq.; Kübler, F., “Regulatory Problems in Internationalizing Trading Markets”, 9 University of Pennsylvania Journal of International Business Law (1987) 107, 107 et seq.Google Scholar

84 See Roquette, supra n. 82, at 567.

85 Between 1979 and 1981 the SEC revised all regulations regarding the issuing of shares by foreign companies in the US securities markets with the intention of making such issues easier. This measure is regarded as the key to the subsequent success of markets like the NASDAQ in attracting foreign companies: see Thomas, B.S., “Internationalization of the Securities Markets: An Empirical Analysis”, 15 Securities Law Review (1983) 523–528.Google Scholar

86 See infra sect. 4.2.3.1.

87 See Poser, supra n. 31, at 2.

88 See Grenier, supra n. 12, at 75 et seq.

89 See Schmidt, supra n. 80, at XXX et seq.

90 See regarding EASDAQ: Cauwenberge, A. van, “EASDAQ: A Pan-European Regulated Market Based in Belgium”, in: Tossens, J.F. (Coörd.), La réforme des marches et des intermédiaires financiers (Brussels 1997) p. 285.Google Scholar

91 See Poser, N.S., “Restructuring the Stock Markets: A critical look at the SEC's National Market System”, 56 New York University Law Review (1981) 883, 888.Google Scholar

92 See Houghton, supra n. 45, at 750 and 755; Macey/ Kanda, supra n. 39, at 1011.

91 See Hamilton, J.L., “Marketplace Organisation and Marketability: Nasdaq, the Stock Exchange, and the National Market System”, 33 The Journal of Finance (1978) 487, 487 et seq.CrossRefGoogle Scholar

94 See Macey/ Kanda, supra n. 39, at 1008-1009. Recently, see Cohen, P.D., “Securities Trading via the Internet”, Journal of Business Law (1999) 299 et seq.Google Scholar

95 See Plewka, H./ Aymans, K., “Die <Neuen Märkte> in Europa”, 44 Der Betrieb (1996) 2192, 2193Google Scholar; Schappelwein, K., “Die neuen KMU- Börsen”, 10 Österreichisches Bank Archiv (1998) 778Google Scholar; Büschgen, H.E., “Börsenmassiges Eigenkapital für kleine und mittlere Unternehmen”, 2 & 3Österreichisches Bank Archiv (1997) 94, 99Google Scholar. The Ministerial Rule that created the Spanish New Market gives a definition of this kind of companies: “empresas de sectores innovadores de alta tecnología u otros sectores que ofrezcan grandes posibilidades de crecimiento futuro, aunque con mayores niveles de riesgo que los sectores tradicionales” [Orden Ministerial, 22 December 1999, por la que se crea un segmento especial de negociación en las Bolsas de valores denominado “Nuevo Mercado” (BOE no. 312, 30 December 1999)].

96 See Ferri, A., “Diagnostic prénatal”, 566 Banque (1996) 23, 24.Google Scholar

97 See Plewka/Aymans, supra n. 95, at 2192; Ferri, supra n. 97, at 23; Schappelwein, supra n. 95, at 779.

98 See Mortier, D., “Une nouvelle donne pour les marchés d'actions”, 566 Banque (1996) 26.Google Scholar

99 See Büschgen, supra n. 95, at 100; Leblanc, D., “Le Nouveau marché est-il liquide?”, 583 Banque (1997) 52, 52 et seq.Google Scholar

100 See Plewka/ Aymans, supra n. 95, at 2192.

101 See Blake, J./ Daghlian, J., AIM and EASDAQ: the new enterprise markets (London 1996) p. 3.Google Scholar

102 Opinion of the Economic and Social Committee on the “Communication from the Commission -European capital markets for Small and Medium-sized Enterprises: prospects and potential obstacles to progress” – 98/C 235/04, OJ [1998] C 235.

103 See Plewka/ Aymans, supra n. 95, at 2193 et seq.; Ferri, supra n. 96, at 34; Mortier, supra n. 98, at 26-27.

104 See Loss/Seligman, supra n. 5, at 644. See generally Note, “The NASD, An Unique Experiment in Cooperative Regulation”, 46 Virginia Law Review (1960) 1586Google Scholar; Rutter, T.B., “The National Association of Securities Dealers: Continuing Government-Industry Cooperative Regulation in the Over-the-Counter Securities Industry”, 7 Villanova Law Review (1962) 611, 611 et seq.Google Scholar

105 See Gilardoni, A., “Il Regolamento Generale Consob: analisi e commento”, in: Pivato, S. ed.), Il mercato telematico per piccole e medie imprese. Realtà locali e contesto internazionale (Milan 1995) p. 45.Google Scholar

106 See Wymeersch, E., “The Implementation of the ISD and CAD in National Legal Systems”, in: Ferrarini, G., (ed.), European Securities Markets. The Investment Services Directive and Beyond (London 1998) pp. 38–39.Google Scholar

107 See Ripert/ Roblot, supra n. 67 at 83.

108 See Davis, K.C., Administrative Law Treatise, 2nd ed. (St. Paul, Minn. 1958) p. 141.Google Scholar

109 See Miller, S.S., “Self-Regulation of the Securities Markets: A Critical Examination”, 42 Washington and Lee Law Review (1985) 855, 860 et seq.Google Scholar

110 See Werner, W., “The SEC as a market regulator”, 70 Virginia Law Review (1984) 755, 756.CrossRefGoogle Scholar

111 Generally see Lowenfels, L.D., “A Lack of Fair Procedures in the Administrative Process: Disciplinary Proceedings at the Stock Exchanges and the NASD”, 64 Cornell Law Review (1979) 375, 375 et seq.Google Scholar

112 See van Cauwenberge, supra n. 90, at 286, note 22.

113 See Anslow, M., “Europe Ready For New Bourses in 1996”, 36 Venture Capital Journal (1996) 25.Google Scholar

114 See generally Izquierdo, supra n. 24, at 45 et seq.; Weber, S., “Kapitalmarkt-, Börsen- und Investmentrecht”, in: Dauses, M., (Hrsg.), Handbuch des EU-Wirtschaftsrechts, (Munich 1998) pp. 1Google Scholar et seq.; IIIWarren, M.G., “Global Harmonization of Securities Laws: The Achievements of the European Communities”, 31 Harvard International Law Journal (1990) 185Google Scholar; Reid, D./ Ballheimer, A., “The Legal Framework of the Securities Industry in the European Community under the 1992 Program“, 29 Columbia Journal of Transnational Law (1991) 103Google Scholar; Ferrarini, G., “Le direttive comunitarie in tema di mercato mobiliare”, Banca Borsa e Titoli di Credito (1983) 105Google Scholar. For the role of the Commission of the European Communities in the harmonization process, see Hirschhofer, H., “The Role of the EC Commission in the Creation of a European Securities Trading Network”, 10 Österreichisches Bank Archiv (1991) 720.Google Scholar

115 See Abella, J., “La Directiva relativa a los servicios de inversión en el ámbito de los valores negociables y la Ley del mercado de valores”, 53 Revista de Derecho Bancario y Bursátil (1994) 55, 56.Google Scholar

116 Second Council Directive 89/646/EEC of 15 December 1989 on the coordination of laws, regulations and administrative provisions relating to the taking up and pursuit of the business of credit institutions and amending Directive 77/780/EEC, OJ [1989] L 386. For more information on this directive see Malet, J., “Movement Towards Financial Integration and Monetary Union in the European Communities”, 13 Houston Journal of International Law (1990) 79, 102Google Scholar et seq.; Clarotti, P., “The Implementation of the Second Banking Directive and its Aftermath”, in: Wymeersch, E. (ed.), Further Perspectives in Financial Integration in Europe (Berlin/ New York 1994) pp. 43 et seq.Google Scholar

117 See Bradley, C., “1992: The Case of Financial Services”, 12 Northwestern Journal of International Law and Business (1991) 124, 145 et seq.Google Scholar

118 See Hernández, A., “El Mercado Único de Valores: especial referencia a la Directiva sobre Servicios de Inversión y a la Directiva sobre Adecuación de Capital. Algunas implicaciones para España”, 117 Noticias de la Unión Europea (1994) 61, 66Google Scholar. For more information about this discussion, see IIIWarren, M.G., “The European Union's Investment Services Directive”, 15 University of Pennsylvania Journal of International Business Law (1994) 181, 193Google Scholar et seq.; Houghton, supra n. 45, at 765 et seq.

119 See Abella, supra n. 115, at 57-58.”

120 For more information, see Cranston, R., “Banking and Investment Services: Implications of the New Financial Landscape”, in: Ferrarini, G. (ed.), European Securities Markets: The Investment Services Directive and Beyond (London 1998) pp. 45Google Scholar et seq. About the role of the Banking industry in the German securities markets, see Kübler, F.K., “Institutional Owners and Corporate Managers: A German Dilemma”, 57 Brooklyn Law Review (1991) 97, 99–100.Google Scholar

121 See Fern, supra n. 96, at 23-24.

122 See Plewka/ Aymans, supra n. 95, at 2193.

123 See Klima, V., “Verbesserung der Rahmenbedingungen für Risikokapitalfinanzierung”, 10 Österreichisches Bank Archiv (1996) 745, 746.Google Scholar

124 See Kersting, M.O., “Der Neue Markt der Deutsche Börse AG”, 5 Die Aktiengesellschaft (1997) 222.Google Scholar

125 See Baetge, J./ Kleekämper, H./ Wollmert, P., Rechnungskgung nach International Accounting Standards (IAS (Stuttgart 1997) pp. 5 et seq.Google Scholar

126 See Bloomenthal, H.S./ Wolff, S., International Capital Markets and Securities Regulation, vol. 10 (St. Paul, Minn. 1999) pp. 1–116.4 et seq.Google Scholar

127 See Demmo, N.G., “US Securities Regulation: The Need for Modification to Keep Pace with Globalization”, 17 University of Pennsylvania Journal of International Economic Law (1996) 691, 693 et seq.Google Scholar

128 See Munguira, J., “Régimen sobre emisiones”, in: Ureba, A. Alonso/ Martínez-Simancas, J., Instituciones del Mercado Financiero, vol. V (Madrid 1999) p. 3103.Google Scholar

129 See Hommelhoff, P., “Europäisches Bilanzrecht im Aufbruch”, 62 Rabels Zeitschrift für ausländisches und Internationales Privatrecht (1998) 381, 382 et seq.Google Scholar

130 For more information, see Stark, J., “Risikokapitalfinanzierung über die Börse – die Rolle derPolitik“, 1 Zeitschrift für das gesamte Kreditwesen (1998) 12, 12–13.Google Scholar

131 See Hulle, K. van, “International Harmonisation of Accounting Principles: A European Perspective”, Wirtschaftpruferkammer Mitteilungen, Special issue June 1997, p. 44Google Scholar; Hunt, D., “Removing barriers to cross border investment by the standardisation of international accounting”, 5 European Financial Services Law (1998) 157, 157 et seq.Google Scholar

132 See Mortier, supra n. 98, at 26.

133 See Commission of the European Communities, Communication from the Commission European capital markets for Small and Medium-sized Enterprises: prospects and potential obstacles to progress, COM (97) 187 final, pp. 11-12.

134 The NASD had, for a long time, no corporate governance requirements corresponding to the NYSE standards. This disparity was viewed as an important factor in a company's decision whether to list, and resulted in a number of NYSE delistings into the NASDAQ. Finally, the NASDAQ adopted corporate governance requirements considering this a matter of quality: see Simon/ Colby, supra n. 7, at 102.

135 This rule is similar to the lock-in provision of the AIM. Although not too onerous, some commentators have argued that this may provide a disincentive to management preventing them from listing new companies: see Blake/ Daghlian, supra n. 101, at 10.