FESE/Hardt: Speech at the Börse Stuttgart MiFID Kongress - Regulatorisches Symposium

23 November 2012

Judith Hardt, Secretary General of the Federation of European Securities Exchanges, gave a speech at the MiFID congress organised by the Stuttgart Exchange. She spoke about the interconnectedness and implications of the MiFID.

Translated from the German

The Commission intends to improve the current market structure by introducing a new OTF category. Through the creation of this category, unregulated trade is to be included in a series of Bank Crossing Networks (BCN). According to proposals, the same trade will be carried out in OTFs as on a regulated market or MTF. 

We are against this! For two reasons:

  1. In our opinion it will lead to a bigger fragmentation of European trade.
  2. In addition, the OTF category will lead to an uneven playing field for European markets. OTFs will be subject to less stringent requirements than for regulated markets and MTFs. 

For this reason we do not support the introduction of OTFs. We need a clear definition of OTC! This definition should clarify which trades can take place on an OTC-basis!

What has the European Parliament decided? MEPs have:

The MiFID reform is central to the G20 recommendations and re-regulation of the financial markets in Europe. These proposals represent a series of comprehensive and far-reaching reforms. If these reforms are implemented as they are, a fundamental redesign of the structure of financial markets will be necessary. Financial markets are here to serve the real economy and not speculation.

Full speech (German only)


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