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A statement from the Commission, seen by Financial News, lists three areas of the recently agreed Markets in Financial Instruments Directive II that it is not satisfied with. The statement will not have a bearing on the rules, which are due to come in from late 2016, but the Commission does say that its concerns on transparency for derivatives markets may lead it to issue further regulation in this area.
The Commission said that it regrets that its initial proposals were not supported by the European Parliament and Council of the European Union, adding that it "will review this matter again in the near future against the objective of achieving effective and fair price formation…and make legislative proposals if appropriate”.
The Commission also has concerns about the rules designed to foster competition among derivatives exchanges and clearing houses, the length of time that so-called “open access” requests can be delayed and the scope of work that needs to be carried out by the European Securities and Markets Authority. The statement suggests that the work that needs to be done by ESMA on the regulations goes beyond its limitations.
On derivatives market competition, the statement says that the ability for trading venues and clearing houses to postpone open access for 30 months “would further consolidate vested market interests”. A spokeswoman for the Commission confirmed the contents of the statement.
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