7.I Introduction

The Investment Services Directive (ISD) was adopted in 1993.1 The ISD was the EEA framework for RMs and investment firms until the introduction of the Markets in Financial Instruments Directive (MiFID I) in November 2007. The ISD introduced common post-trade transparency rules within the EEA. The ISD post-trade transparency rules were part of the broader ISD aim of (a) protecting investors and (b) ensuring the smooth operation of the financial markets.2 To support the two-fold aim, the ISD permitted (not: obliged) Member States to require investment firms to route orders to so-called RMs (concentration of trading).3 The ISD made a distinction between (1) RMs4 and (2) investment firms (MTFs and SIs did not yet exist).5 RMs were subject to ISD post-trade transparency rules.6 The ISD post-trade transparency rules were minimum harmonized (similar to the ISD pre-trade transparency provision). Member States were permitted to lay down stricter post-trade transparency rules than those set by the ISD,7 which in practice was often the case.8 Investment firms were not subject to ISD post-trade transparency rules.9 In other words, during the ISD timeframe post-trade transparency regulation for investment firms was entirely at the discretion of the individual EEA jurisdictions.