Poor trading data is hampering the European Union's capital market, ruling out any radical reform to securities rules before statistics have been improved, a senior official from the bloc said on Friday.
Banks
and stock exchanges are at loggerheads over changes being considered by
Brussels to the EU's bond and stock trading rules, knowns as 'MiFID
II'.
Exchanges
want a 15-minute delay in how their prices are published across markets
in a planned "consolidated tape" of completed transactions, while asset
managers and regulators want real-time publication.
Bourses
also want tougher rules on trading away from mainstream platforms but
banks say such moves are unnecessary because most trading happens on
exchanges. Banks say figures showing a large volume of trading happening
off exchanges are swelled by 'technical' trades that have no influence
on prices.
"Before
we have a complete picture, we are not going to take overly radical
decisions," Tilman Lueder, head of securities markets at the EU's
executive, the European Commission, told an event held by European
markets lobby AFME.
Commission
proposals to amend MiFID II are due before year end as the bloc seeks
to deepen its capital market after Britain's exit last December.
Lueder
said retail investors, key to deepening the bloc's capital market, are
"third tier" participants due to the lag in the prices they get,
compared with deep-pocketed players who can afford real time prices....
more at Reuters
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