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This conference is also very timely for me to raise two key topics you have discussed or will discuss in other sessions – the review of the MiFID/ MiFIR framework and of the Market Abuse Regulation (MAR).
Since the end of the last year, ESMA has been contributing to the MiFID review through a series of reports. In addition, the European Commission recently published its proposals for short term changes to the market legislation framework (‘the quick fix’) as well as the action plan on the development of the Capital Markets Union (CMU). All this work links together specific aspects of MiFID with the question of what should be our long-term vision for efficient...
The Review of MiFID II and MiFIR
Turning to more ‘business as usual’ aspects of ESMA’s work, I want to start on the broad topic of MiFID II and MiFIR, which are the cornerstones of EU financial markets regulation. They are the key pieces of post-financial crisis legislative reform, which reinforced the rules applicable to securities markets to increase transparency, foster competition and strengthen the protection of investors. It is now over two and a half years since this legislation came into effect, and it makes sense to look back and analyse what has worked well, and what needs to be improved. While this framework brought about significant advancements to the functioning and transparency of EU financial markets, it is fair to say that, as always, there are areas where a further look is necessary at how the MiFID II framework works in practice and whether the objectives of the co-legislators have been achieved.
By preparing a range of reports on key provisions of MiFID and MiFIR and submitting them to the European Commission that considers our work when proposing legislative changes, ESMA plays a central role in this review. Of course, it should be noted that some more urgent legislative changes are already underway following the Commission’s proposals for a capital market recovery package. In parallel also the latest Action Plan will bring forward significant changes that will foster the building of the Capital Markets Union....
The review of the Market Abuse Regulation (MAR)
Let me now focus on the Market Abuse Regulation. I know you had already an in-depth discussion on the topic yesterday, but I thought this would be a good opportunity to highlight some of the aspects from our MAR review report that we have just published. Overall, we concluded that the Regulation works well and is fit for purpose. Consequently, the vast majority of the changes that we proposed to the European Commission represent an evolution, taking into account the experience in its application, rather than a revolution or radical overhaul of the framework. For example, we make proposals in relation to further guidance on inside information, clarifications to the market sounding regime, application of MAR by collective investment undertakings as well as simplification in the area of buybacks and their reporting...