(Reuters.) – Thursday’s draft legislation was published by the European Union’s executive to help create a more efficient single market in securities. The laws will be used for recovery after COVID-19, funding ‘green’ projects, and building ‘autonomy” in financial services.

Here are some of the key proposals:

EUROPEAN SINGLE ADDRESS POINT

ESAP will be the EU’s solution to EDGAR that is used in the United States by businesses for filing mandatory information. It will go live in 2024 and be managed by the EU’s securities watchdog ESMA. To provide investors with a single source of information about listed EU companies and EU financial products, it will gather filings from all national authorities in the bloc.

EUROPEAN LONG-TERM INVESTMENT FUNDS

Since so few ELTIFs are currently in existence, ELTIFs will have more flexibility to provide access for retail investors as well as to meet professional investors’ marketing needs.

CONTROLING INVESTMENT FUNDS

The EU’s rules for allowing a fund to delegate stock or bond picking can be clarified. It has been practiced since the 1960s, and is called “delegation”. Alternative funds like hedge funds will be affected by the new rules. The same applies to EU mutual funds called UCITs. For a fund to be considered a “letter-box company”, it would have at minimum two staff members in the bloc. Funds should have the EU as their majority asset.

TRANSACTIONS TAPE OF SECURITIES

The creation of a consolidated tape, or record that is “near-real time” in stock prices. A separate tape will be kept for bonds and derivatives. These tapes can help to find the best deals. Large investors are fond of stricter regulations for trading stocks off exchanges and’midpoint’ trading.

MEASURES ANOTHER

* A ban on trading operators offering incentives to brokers for directing retail client stock orders to them, know as payment-for-order flow.

* Ending a requirement on clearing houses to clear exchange traded derivatives from another exchange, if requested.

WHAT IS NEXT

To become law, the proposals must be approved by the European Parliament as well as EU member countries. This process is often complicated and involves changes.