30.4.2004 Official Journal of the European Union L 145/1 | (Acts whose publication is obligatory) 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 THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUR- ) In recent years more investors have become active in OPEAN UNION, the financial markets and are offered an even more complex wide-ranging set of services and instruments. In view of these developments the legal framework of the Community should encompass the full range of investor-oriented activities. To this end, it is necessary to provide for the degree of harmonisation needed to offer investors a high level of protection and to allow investment firms to provide services throughout the Community, being a Single Market, on the basis of home country supervision. In view of the preceding, Directive 93/22/EEC should be replaced by a new Directive. Having regard to the Treaty establishing the European Com- munity, and in particular Article 47(2) thereof, Having regard to the proposal from the Commission (Y), Having regard to the Opinion of the European Economic and Social Committee (%), (3)  Due to the increasing dependence of investors on per- sonal recommendations, it is appropriate to include the provision of investment advice as an investment service requiring authorisation. Having regard to the opinion of the European Central Bank (), Acting in accordance with the procedure laid down in Article 251 of the Treaty (%), (4) It is appropriate to include in the list of financial Whereas: instruments certain commodity derivatives and others which are constituted and traded in such a manner as to give rise to regulatory issues comparable to traditional q o~ . ) financial instruments. (1) Council Directive 93/22/EEC of 10 May 1993 on in- vestment services in the securities field () sought to establish the conditions under which authorised invest- ment firms and banks could provide specified services or establish branches in other Member States on the basis of home country authorisation and supervision. To this end, that Directive aimed to harmonise the initial authorisation and operating requirements for investment firms including conduct of business rules. It also pro- vided for the harmonisation of some conditions govern- ing the operation of regulated markets. (5) It is necessary to establish a comprehensive regulatory regime governing the execution of transactions in finan- cial instruments irrespective of the trading methods used to conclude those transactions so as to ensure a high quality of execution of investor transactions and to uphold the integrity and overall efficiency of the finan- cial system. A coherent and risk-sensitive framework for regulating the main types of order-execution arrange- () O] C 71 E, 25.3.2003, p. 62. ment currently active in the European financial market- () 0OJ C 220, 16.9.2003, p. 1. place should be provided for. It is necessary to recognise () OJ C 144, 20.6.2003, p. 6. the emergence of a new generation of organised trading (‘) Opinion of the European Parliament of 25 September 2003 (not yet systems alongside regulated markets which should be published in the Official Journal), Council Common Position of 8 December 2003 (O] C 60 E, 9.3.2004, p. 1), Position of the . .. . . . European Parliament of 30 March 2004 (not yet published in the cient and orderly functioning of financial markets. With Official Journal) and Decision of the Council of 7 April 2004. a view 1o fiSFabhshmg a proportionate reg}ﬂamr}’ frame- () OJ L 141, 11.6.1993, p. 27. Directive as last amended by Directive work provision should be made for the inclusion of a 2002/87[EC of the European Parliament and of the Council (OJ L new investment service which relates to the operation of 35, 11.2.2003, p. 1). an MTFE. subjected to obligations designed to preserve the effi-