On-line brokerage
is a typical example of how the financial services sector is
using the Internet to deliver its services. Consumer confidence
is the key to the success of all on-line financial services.
This is why providers have to ensure that their services are
secure. On-line services will speed-up the integration of Europe's
financial markets. It is important that consumers are able to
choose between competing providers throughout the single market.
On the other hand, a high level of consumer protection and information
needs to be guaranteed.
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Background:
On-line brokerage is a typical example of how the financial services
sector is using the Internet to deliver its services. The on-line
brokerage market now represents more than 25% of the total stock
market trades carried out by private investors in some European
countries. These on-line services are offered by the traditional
providers of financial services like banks and stock brokers, as
well as by on-line brokers that are operating exclusively on-line.
The success of dealing in securities (i.e. stocks, bonds, shares,
and derivatives) on the Internet clearly shows a vast demand for
these kinds of Internet services. On-line brokers are subject to
rigorous prudential supervision but also have a strong commercial
incentive to protect their clients' security and ensure their trust.
