WFE responds to Europe’s MiFID II consultation
20 May 2020 London
Image: BrAt82/Shutterstock
The World Federation of Exchanges (WFE), the global industry group for exchanges and central counterparties (CCPs), has responded to the European Commission consultation on the review of the second Markets in Financial Instruments Directive (MiFID II) and the Markets in Financial Instruments (MiFIR) regulatory framework.
In its response, WFE looked at the share trading obligation and explained that its view is that third-country venues and shares are important to the European financial market value chain.
To address this, WFE suggested a balanced mechanism for excluding them from the share trading obligation, while bringing in EU listings from third-country.
Further highlights from WFE’s response, regarding market data, revealed concerns remain that the consumers of market data are using the prospect of an EU consolidated tape not to further the interests of end-investors, but rather their own commercial interest through regulatory price controls.
On the consolidated tape, WFE explained that its position is that a post-trade tape of record represents the only consolidated tape which has a clear use case and would be likely to be viable in terms of costs and benefits.
Meanwhile, on the topic of regime for spot foreign exchange (FX), WFE encouraged the European Commission to refrain from making changes to the regime for spot FX in the context of the ongoing implementation of the global code.
Nandini Sukumar, CEO of WFE, stated: “Europe is an important region. Exchanges and CCPs around the world believe that the market structure being created as a result of MiFID II will influence capital market development around the world. As such it’s important to get it right, especially at a time when we are confronting a global recession and the difficult task of rebuilding economies.”
To read WFE’s full response, click here.
In its response, WFE looked at the share trading obligation and explained that its view is that third-country venues and shares are important to the European financial market value chain.
To address this, WFE suggested a balanced mechanism for excluding them from the share trading obligation, while bringing in EU listings from third-country.
Further highlights from WFE’s response, regarding market data, revealed concerns remain that the consumers of market data are using the prospect of an EU consolidated tape not to further the interests of end-investors, but rather their own commercial interest through regulatory price controls.
On the consolidated tape, WFE explained that its position is that a post-trade tape of record represents the only consolidated tape which has a clear use case and would be likely to be viable in terms of costs and benefits.
Meanwhile, on the topic of regime for spot foreign exchange (FX), WFE encouraged the European Commission to refrain from making changes to the regime for spot FX in the context of the ongoing implementation of the global code.
Nandini Sukumar, CEO of WFE, stated: “Europe is an important region. Exchanges and CCPs around the world believe that the market structure being created as a result of MiFID II will influence capital market development around the world. As such it’s important to get it right, especially at a time when we are confronting a global recession and the difficult task of rebuilding economies.”
To read WFE’s full response, click here.
NO FEE, NO RISK
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