FESE welcomes CESR’s new arrangements on transaction reporting

FESE welcomes CESR’s decision to adopt two new arrangements facilitating full implementation of transaction reporting mandated by MiFID Article 25. However, in the course of CESR’s consultation on this issue in January 2007, FESE Members discovered significant problems that would have resulted from the mandatory use of the ISIN code for all derivatives.

BBA comments on MiFID

The private banking industry could face significantly more work for an unclear benefit under the new EU directive governing financial markets, warns the British Bankers' Association's Private Banking Advisory Group. Private banks, which aim to utilise the investment processes of the biggest financial institutions for the benefit of individual clients, may face a heavier regulatory burden. 

AEIP - ‘Solvency II must be modified’

The European Association of Paritarian Institutions of Social Protection (AEIP) has warned the Solvency II proposals must be modified to suit main IORP directive principles for pension schemes. AEIP argues long-term investment in real assets instead of nominal assets can diminish the cost of the pensions, while Solvency II and actual nominal short-term solvency requirements is likely to “considerably” increase the costs.

NYSE Euronext agrees block trading link-up

NYSE Euronext announced it would form a joint venture with BIDS Holdings. The model unveiled by the exchange is the same as that outlined for Project Turquoise. That NYSE Euronext has developed a similar business model suggests that the concept of what constitutes on-exchange trading may be undergoing a radical shift.

Moody's predicts cross-border banking consolidation

The incorporation of Capitalia into UniCredito was probably the last chance for a major inter-Italian consolidation in the banking sector but mergers are likely to continue cross-border, analyst group Moody's has stated. Moody's noted further cross-border consolidation was an issue "unlikely to disappear" and "it may be difficult for UniCredito not to become involved at some point".

MiFID enters into force on 1st November

On 1 November 2007, the Markets in Financial Services Directive will enter into force. "MiFID is a ground-breaking piece of legislation", Commissioner Charlie McCreevy said. “I would like to urge those Member States who have not transposed to hurry up – such lack of action will damage their own firms".

ECB Fifth Progress Report on TARGET2

The ECB released its fifth progress report on TARGET2 which covers the Governing Council’s recent decisions concerning remaining operational issues. The report also includes the Information Guide for TARGET2 Users and the Information Guide for TARGET2 Pricing, and describes the communication events envisaged to accompany the new system when it goes live.

IMA calls on Treasury and FSA to rethink proposals for covered bond regime

IMA has called on the Treasury and FSA to re-consider their proposals for a UK Recognised Covered Bond regime to ensure that investors are not put at risk through exposure to low quality assets such as sub-prime products.  IMA favours introduction of a well thought out Recognised Covered Bond regime and the potential it has to offer investors more choice and aid portfolio diversification.

ECB Progress report on TARGET2-Securities

The ECB published a progress report on TARGET2-Securites. The report reviews the progress made so far on the definition of the T2S user requirements and the outcome of the public consultation on the “General principles and high-level proposals for the user requirements”.  The ECB expects to submit the draft T2S User Requirements Document towards the start of 2008. 

Commission call for evidence on substitute investment products

The Commission published a call for evidence on the impact of the fragmented regulatory landscape for retail investment products on the protection of retail investors. The call focuses on whether this fragmented regulatory landscape leads to unacceptably high variations in the level of product disclosure and investor protection, deadline for responses is 18 January.

CESR announces new arrangements for transaction reporting

CESR adopted two new arrangements for transaction reporting in order to solve remaining issues in accordance with the MiFID Directive. CESR will review the arrangements in three years time or earlier if needed. 

Government bond market developments ease EC competition concerns

Recent developments in opening up the platforms for government bond trading have gone some way to alleviating competition concerns, following an informal probe into the sector which the European Commission has been conducting this year.

EC fires warning shots at financial markets

The Commission has sent a strong warning to the EU's governments, exchanges and post-trading sector ahead of an overhaul to the laws underpinning the industry, threatening possible anti-trust action if restrictive practices remain in the clearing and settlement industry. The Commission also signalled that governments not implementing the new MiFID legislation will not be treated lightly.

German Cabinet passes 'acting in concert' bill

The German government passed a disputed bill for more transparency of investments in the German market. The bill had been criticised by UK pension fund manager Hermes, Dutch platform for institutional investors Eumedion as well as various German investment associations as detrimental to foreign investments.

Germans up support for compulsory second pillar

Making occupational pension provision compulsory would help ease fears over poverty at retirement, an increasing number of Germans agree. According to the most recent poll conducted by German bank Postbank, 43% of those questioned think it would be a good idea to make the second-pillar compulsory in Germany.

EU tells Groupement des Cartes Bancaires to end anti-competitive practices

The Commission ordered the Groupement des Cartes Bancaires, which manages a system accounting for over 70 pct of card payments in France, to end anti-competitive practices. The Commission said the grouping of major French banks has used price measures which hinder the issuing of cards at competitive rates by certain other financial institutions.

EU to rule on MasterCard interchange fees 'as soon as possible'

The Commission said it hopes to complete an inquiry into MasterCard Inc and rule on the credit card group's interchange fee payments network "as soon as possible".  At the start of this month, Kroes said she envisaged that the inquiry would be completed by the end of the year.