EFAMA members breathe a collective sigh of relief as this agreement moves us closer to a firm roadmap to deliver a real-time consolidated tape for equities, and builds the foundations for real-time pre-trade equity data.
EFAMA commends the
efforts of the Czech Presidency and Member States in reaching an
agreement on the review of MiFIR/MiFID. EFAMA members welcome the
Council position which unequivocally comes down on the side of
competitive, globally attractive markets, driven by diversity and
innovation and the right tools and infrastructures to support the retail
investor.
EFAMA members breathe
a collective sigh of relief as this agreement moves us closer to a firm
roadmap to deliver a real-time consolidated tape for equities, and
builds the foundations for real-time pre-trade equity data. The
provisions for a bond tape are equally welcome, though we highlight the
importance of appropriate deferral periods for the larger less liquid
trades, and a fair revenue-sharing mechanism for data contributors that
does not include open-ended provisions for ‘loss of revenue’.
The agreement also
rightfully addresses another looming problem in Europe: the cost of
market data. In that respect we are pleased to see the strengthening of
the Reasonable Commercial Basis principle in the Council text. We
would also urge the co-legislators to anticipate similar
cost/competition issues by proposing a robust governance framework to
future-proof access and fair pricing of data.
A single volume cap
set at 10% simplifies the equity market transparency regime, while
preserving diversity of trading options for all investors. On the
question of the payment to brokers for routing orders (Payment for
Order Flow), we believe that before either contemplating a full ban, or
allowing the practice with appropriate restrictions to protect the
retail investor, an in-depth analysis should be carried out to assess
the real impact of PFOF on price formation, liquidity, retail investor
participation and ability to execute at the best available price. Such
an impartial study on the European market is lacking today.
EFAMA
© EFAMA - European Fund and Asset Management Association
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