CESR: Mixed responses on MiFID secondary markets functioning

21 January 2009

CESR received mixed responses to its call for evidence on the impact of MiFID on secondary markets functioning ranging from deep concern to an overall positive assessment.

CESR received mixed responses to its call for evidence on the impact of MiFID on secondary markets functioning ranging from deep concern to an overall positive assessment.

 

ABI notes that there is a great deal of concern that the introduction of MiFID has had a detrimental effect on the functioning of the secondary markets and that the fragmentation of both pre- and post-trade data has led to a decrease in transparency. We would urge CESR to review the MiFID requirements and the way in which they have been implemented, and take action to improve secondary market functioning, ABI notes.

 

EFAMA is in particular concerned that the lack of provisions mandating data consolidation would lead to data fragmentation for pre-trade and post-trade data.

 

FESE stated that new CESR work needed in the form of Level 3 guidance. In view of the problems encountered so far, we especially recommend that CESR resume the work it had originally planned to do on the implementation of the Systematic Internaliser regime, FESE notes.

 

EBF, however, has an overall positive impression of the impact of the MiFID to date. But as many other respondents EBF notes that more time is needed for a full evaluation.

 

A joint response of a group of securities dealers associations all over Europe, including LIBA, and BBA, notes that as regards integrity and overall efficiency, there have been improvements in some areas, and deterioration in others. Competition and contestability have improved, but data have improved in some markets and deteriorated in others, they note. Like the EBF this group calls that more time is needed to enable a full assessment.

 

Responses

 


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