12 September 2006

FBE response on Call for Evidence on Transparency

The FBE published its response to the Commissions Call for Evidence on Transparency in bond markets and other non-equity markets stressing that the Commission could not justifiably recommend policy intervention at this stage in respect of pre-trade transparency in the non-equity markets.

FBE argues that at this time it is practically very difficult to predict how the implementation of MiFID would have a bearing on transparency in the non-equity markets. Therefore, the FBE calls on the Commission to consider postponing any judgement and subsequent policy decisions in respect of transparency in the non-equity markets until the financial industry and regulatory authorities could make a fair assessment of the effectiveness of systems and the opportunities MiFID is designed to deliver.

The Federation believes that there is not sufficient evidence available today that point to the non-equity market exposing investors to excessive or unforeseen risk. FBE does not foresee a market failure in the non-equity markets to address at this present time.

Also, the burden of proof rests on the Commission to demonstrate where market failures lie and why a particular course of action would be optimal for Europe’s Single Market.

Document

© FBE