The financial services industry has sent an open letter to the EP, Council and Commission, reiterating that the MiFID review should build a safe, efficient, robust and socially useful financial system.
Access
The original MiFID provided investor choice in the trading of equities, which led to clearing choice and reduced investors' and companies' cost of capital. The MiFID review must continue this work, extending the MiFID reforms and the benefits of choice to non-equity markets. A key component is the delivery of the open access requirements in the Council approach as a minimum. Access will benefit end-investors, stimulate true choice in the execution and clearing of products such as Exchange Traded Derivatives, create deep pools of liquidity for given instruments, reduce costs and minimise risk in the financial system. It is also consistent with IOSCO and the Financial Stability Board's recent statements, as the delivery of the G20 commitments will lead to investors being required to clear progressively more business and to trade it on venue.
Market data
The MiFID review also allows for the re-integration of market data, through the arrangements for distribution of harmonised, high quality and timely consolidated post trade data. This will represent an authoritative picture of the market to investors, market users and regulators, and allow users to trade with confidence. Time should be of the essence with this work, thus the signatories believe that common standards for data must be applied as a priority across the market and on vendors in MiFID II. Once implemented, authoritative post-trade data at reasonable costs should develop, reflecting the diverse needs of investors. However, in case no commercial solution emerges, a strong review clause should also be in place to reassess the situation.
Full letter
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