The Commission has commenced a consultation on the harmonisation of the legal framework for securities holding and transactions. This follows an earlier consultation last year where the Commission reviewed existing legal practices and obstacles faced by the market in the context of cross-border transfers of securities. This consultation contains a list of principles that the Commission would like to submit to stakeholders for further evaluation prior to preparing a formal legal proposal. The consultation runs to 1st January 2011. Currently EU Member States' laws on the holding and disposition of securities such as stocks and bonds differ. This fragmentation could lead to legal uncertainty in cross-border situations, for example, when investors have difficulty in exercising their rights attached to securities acquired in another Member State such as the receipt of dividends etc. The Commission will present a legislative proposal before summer 2011 to increase legal certainty and efficiency of securities holding and improve protection of investor's rights as well as address some other related aspects.