Parliamentary supremacy and Price transparency: Difference between pages

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imported>Doug Williamson
(Expand to clarify the UK's joining the EU.)
 
imported>Doug Williamson
(Add link.)
 
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''Law''.
Price transparency is the amount of information available to market participants about prices.  


The historical legal principle in the UK that the UK Parliament was 'supreme' in its law-making powers.


This principle was fundamentally affected when the UK joined the EU in 1973.
Price transparency takes two forms:
 
#'Pre-trade price transparency', i.e. the prices at which counterparties advertise they are willing to buy or sell specific financial instruments.
Parliamentary supremacy meant that:  
#'Post-trade price transparency', i.e. the prices at which counterparties recently bought or sold specific financial instruments.
 
#The UK Parliament was able to make law for the UK as it saw fit either by repealing earlier statutes, over-ruling case law or by making new law.  
#No UK Parliament could bind its successor.   Parliament could not make laws that a subsequent Parliament was prevented from altering or repealing.  
#The courts in the UK had to apply the relevant statute law enacted by the UK Parliament.
By the UK's joining the EU, UK Parliamentary supremacy was fundamentally affected and it is no longer true to say that only the UK Parliament has the power to make new law for the UK.
 
The effect of the UK's becoming a member of the EU was to cede the UK Parliament's supremacy on certain matters of European Union law which have direct effect on member states. 
 
The position now is that: 
 
#The EU may pass legislation directly for the UK.
#The UK cannot, generally, make laws that conflict with EU law.
#Overall, EU law enjoys supremacy over domestic national law and is applied in priority to domestic law.




== See also ==
== See also ==
* [[European Union ]]
*[[Circuit breaker]]
* [[Sovereignty]]
*[[Electronic communication network]]
 
* [[Invisible FX]]
[[Category:Compliance_and_audit]]
*[[Price discovery]]
*[[Price formation]]

Revision as of 12:37, 20 March 2022

Price transparency is the amount of information available to market participants about prices.


Price transparency takes two forms:

  1. 'Pre-trade price transparency', i.e. the prices at which counterparties advertise they are willing to buy or sell specific financial instruments.
  2. 'Post-trade price transparency', i.e. the prices at which counterparties recently bought or sold specific financial instruments.


See also