Germany

Market price manipulation and forward contracts under Germany’s Fourth Act on the Promotion of Financial Markets

Rüdiger Litten and Valeska Hoffman. Norton Rose Vieregge, Frankfurt

A commonly used (and often decisive) criterion for the international competitiveness of a nation’s economy is the functionality and efficiency of its financial markets. The German government is now seeking to make Germany’s financial markets even more attractive to issuers and investors, with the proposed Fourth Act on the Promotion of Financial Markets ( 4.Finanzmerktförderungsgesetz) (the “Act”). As of the time of writing, the Act is still in draft from but is expected to become effective in 2002 unless its adoption is postponed in the light of Germany’s forthcoming elections in September 2002.