Do we only miss the stock market when it is dying?

An article that speaks volumes! The Brussels stock exchange is dying a slow death", writes Peter De Groote in De Tijd. Is that surprising? Those familiar with the Nyrstar case will certainly not be surprised.

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Last week I had the opportunity to explain the Nyrstar debacle to the Finance and Budget Committee. On the agenda: strengthening the Belgian capital market. My argument: not more rules, but better enforcement, stricter supervision and decisive remedial action when things go wrong are absolutely necessary to restore investor confidence in the stock market. In short, be lenient with those who behave correctly, but show teeth to those who abuse. Otherwise, you will get a breach of trust and investors will turn their backs on the stock market.

Trust is the oxygen of a thriving and growing stock market. A solid trust base is important for everyone 𝐦𝐞𝐭 𝐠𝐨𝐞𝐝𝐞 𝐢𝐧𝐭𝐞𝐧𝐭𝐢𝐞𝐬: first and foremost the companies themselves, the entrepreneurs/families behind them, institutional investors and retail investors. As a minority shareholder, why invest in a listed company if you know that the rules can simply be broken by insiders with no effective recourse?

So is our stock market so much worse than those of other countries? Some say not. Allow me to strongly disagree. And I am not alone. De Tijd does not shy away from tough talk either, writing that the swan song of the Brussels stock exchange has begun. End of discussion. The case is closed.

The figures don't lie, as another article https://lnkd.in/g6CAEyQi shows: the Brussels Stock Exchange still only has a 4% market share on Euronext, while the number of transactions fell by no less than 9% last year. A vicious circle that will be difficult to break.

But there is always hope. With 300 billion in savings accounts, why can't our country do the same? It can, but the loopholes have to be closed. The Financial Services Authority (FSMA) is making some excellent proposals to turn the tide. The ball is now in the legislator's court.

This is a clarion call to our politicians. Intervene, get our stock market out of the doldrums and restore confidence. Doing nothing is not an option. Time is running out, it is time for a new government to reach out. In the current geopolitical context, further delay is irresponsible. Our businesses, our economy and our prosperity are at stake. A new Nyrstar saga would kill the stock market. It is five to twelve and your turn.

Go to original article 'De Tijd'