15 September 2006

EAPB position on Commission’s Call for Evidence on MiFID

The EAPB issued its response on the pre- and post-trade transparency provisions of the MiFID Directive in relation to transactions in classes of financial instruments other than shares. The Association states among others that every regulatory market intervention results in market distortion and can only be justified, if an existing market failure is to be proved. Also, it must be proved that the market in question is unable to establish an optimum degree of transparency, and that such market failure can be eliminated by means of regulatory interventions.

The EAPB also underlines that market failure has to be investigated individually on the basis of each securities class and on the basis of each market per se. Subsequently, the question whether such circumstances would then have to be addressed by means of self-regulation or through legislation would equally merit a case-by-case decision.

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