Irish Presidency reaches breakthrough on new proposals for safer and more open financial markets

17 June 2013

The MiFID/MiFIR proposals signal a significant step forward by the EU towards enhancing transparency levels and limiting the growth of 'dark pool' trading in particular.

Agreement was reached among Member States’ Ambassadors this morning and will be presented by Minister Noonan to EU Finance Ministers for their approval at the meeting of the ECOFIN Council on Friday 21 June.

Welcoming the agreement, the Minister for Finance Michael Noonan TD said: "Reaching agreement among Member States on these new rules has been an Irish Presidency programme objective. Strengthening financial regulation can reinforce stability and confidence in the financial system, ultimately underpinning economic growth and job creation. We have worked extensively with Member States over the past six months in getting this agreement today, which paves the way for negotiations to begin with European Parliament on finalising the legislation." 

The new framework will also increase the supervisory powers of regulators and provide clear operating rules for all trading activities, including harmonising provisions concerning the activities of investment firms, regulated markets and data service providers. These proposals are part of the G20 commitments to enhance transparency, mitigate systemic risk and protect against market abuse.

The main elements of the position taken by Member States today include:

• Enhanced transparency: Member States have decided to limit ‘dark pool’ trading and introduce a new trade transparency regime for non-equities markets
• More robust and efficient market structures with the introduction of a new type of trading venue, the Organised Trading Facility (OTF)
• Specific support to facilitate better access to capital markets for small and medium-sized enterprises.
• Non-discriminatory open access to trading venues and central counterparties
• New safeguards to take account of technological developments such as  algorithmic trading or  high speed trading
• Stronger investor protection
• New rules on corporate governance and managers' responsibility
• Enhanced framework for derivatives markets.

30 months since publication of the Commission’s original proposal, the Council General Approach will receive its final seal of approval by the 27 Member States of the Council on 21 June, 2013. The agreement was reached following intensive negotiations and numerous Council Working Party meetings chaired by the Irish Presidency, and now paves the way for this file to progress to the next stage of the legislative process, which is engagement via trilogues with the European Parliament.

Press release

Compromise Texts, 10.6.13:

• MiFID
• MiFIR

© Irish Presidency