The European Securities and Markets Authority is taking submissions from industry participants and other stakeholders about a potential new framework for market activity until 2 March 2015.
The new framework aims to introduce new transparency and regulatory frameworks for European traders and investors, according to a communication from global law firm Pinsent Masons.
ESMA chair Steven Maijoor said the new framework must be practicable in its nature.
"[The] implementing rules on both secondary markets and investor protection issues reflect ESMA's desire to achieve the best outcome for market users and investors, taking into account the extensive submissions received from our stakeholders," he said.
"The advice now goes to the European Commission to use in preparation of its delegated legislation, while our technical standards are open for a second round of consultation."
One of the potential regulatory changes on the table is a new “trading obligation” for derivative trades, mandating that these transactions take place on a specified and sanctioned platform.
Pinsent Masons anticipates that the new framework will have implications for investment banks, fund managers, stockbrokers and “independent high street financial advisers”.
Rules proposed by ESMA will also have the effect– should they be enacted – of making it more difficult for financial services providers in non-EU countries to trade within the bloc.
“The legislation would also introduce trading caps on alternative trading markets, known as 'dark pools'; and new supervisory tools and reporting requirements for commodity derivatives,” the communication states.
