ECON Draft Resolution on MiFID

21 March 2006

Piia-Noora Kauppi, EP ECON rapporteur on the MiFID directive, presented the draft version for a resolution on MiFID in Parliament, making abundantly clear that the document is only a first version and that there may still be a number of changes, e.g. on including derivatives in non-complex products.

The rapporteur identified a number of subjects the Commission should take into account including among others the treatment of block trades and large transactions. The rapporteur calls to exclude some secondary market transactions from transaction and trade reporting obligations. With regard to client identifiers as part of the transaction report Mrs Kauppi calls for a standstill clause, to the effect that Member States where it is not currently enforced could not adopt it.

Other points include:

Use of SI-personnel for non-SI business,

Post-trade publication of portfolio trade data,

Availability of pre-and post-trade data , and

Delays in publishing large transactions.

Furthermore, the rapporteur identified a number of conflicts of interest that need to be clarified. These include among others the best execution on an order-by-order basis and the inclusion of derivatives in non-complex products.

In a first short response the Commission already denied the inclusion of derivatives in non-complex products.

Draft Resolution

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