TOD up for review – what’s new?

The Transparency Obligations Directive (TOD) will be reviewed this year by the European Commission Internal Markets Directorate (DG Markt). Last year, a report was published, with a review of what stakeholders thought should change. These changes will potentially affect the activities of providers of service to IR professionals in several areas.

In the major shareholdings (shareholder ID), there are ideas around upgrading TOD to include short selling, stock lending, derivatives, as well as (controversially) for investors to provide more detailed information on their intention when borrowing stock, harmonising the thresholds of disclosure, as well as lowering the minimum standard to 2 or 3%.

In corporate reporting there is less controversy, with general support for the timing and content of disclosures, including especially interim management statements.

Meanwhile in news dissemination and storage, again general support for the PIP/SIP regime, but some interesting ideas around how and where storage could be undertaken. Also, the genie of “an EDGAR for Europe” is out of the bottle, and what role the regulators/ exchanges should play.

The Commission plans to host a meeting to discuss all of this in June. I for one plan to be there!