Tuesday March 10 2015

News Source: Global Exchanges

Focus: MiFID (Global Exchanges)

Type: General




The Federation of European Securities Exchanges (FESE) has responded to the European Securities and Markets Authority Consultation Paper on MiFID II / MiFIR.

Particularly the following points have been highlighted:

Transparency of equity and equity-like instrument:

  • Request for Quotes systems (RFQs): ESMA must restrict the RFQ to equity-like instruments only as equity instrument systems could create a loophole in terms of pre-trade transparency and ‘multilateral nature’ of exchanges.
  • Systematic Internaliser regime: FESE is concerned with the potentially flexible transparency regimes for SIs than the one applicable to which market-makers active on multilateral platforms.

Transparency of non-equity instruments:

Transparency regime for Exchange Traded Derivatives (ETDs): FESE is concerned about the approach pursued by ESMA for ETDs.

Data disaggregation: FESE strongly appreciates ESMA’s approach as regards a mandatory disaggregation of four asset classes, additionally, they do not agree with further disaggregation, as this would add to unmanageable complexity and potentially higher costs to the end user instead of lower cost and thus be neither proportionate nor efficient.

Microstructural issues: FESE would like to highlight to ESMA that they have made a number of proposals with regards to the microstructural portion of this consultation.

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