|
|
FESE issued a statement on the Target2 Securities project contributing to the ongoing discussions and in particular the future governance structure of T2S.
FESE states that T2S seems to have changed in terms of its scope and definition. In more recent discussions it became clear that other market participants would be allowed to connect directly to T2S. The exact functionalities of the proposed system are not absolutely clear. Hence, it is extremely difficult to work out a meaningful costs/benefit analysis and decide on whether T2S will be beneficial or not, FESE states.
On the Governance Structure of T2S and level paying field FESE notes that it would conflict with the principles of MiFID to allow one type of operator of an execution venue (i.e. investment banks) to dictate the post-trade user requirements that could materially affect the competitive circumstances of other trading venues (such as Regulated Markets).