Annual Report - paperJam

The MiFID and the PRIPs
The EU Commission launched a consultation
on the MiFID (Markets in Financial Instruments
Directive) in December 2010. It was composed
of nearly 150 questions on fields ranging from
market organisation to telephone recordings,
from the definition of advise or the impact of
High Frequency Traders on the markets to a full
revision of transparency rules on equities, bonds
and derivatives markets. The outcome is expected
by the end of January 2011, with a first
draft of amendments to the directive scheduled
for the middle of the second quarter, before the
regulatory procedure with the other EU institutions
can begin.
In a context closely linked to MiFID, the EU
Commission also worked on Packaged Retail
Investments Products, or the PRIPs: 2 page
documents that will replace current versions of
simplified documents for all collectively managed
or designed financial products for retail
clients. The ABBL is rather supportive of the
proposal -- although additional details may
change its view -- because it truly goes in the
direction of a better and more transparent
approach for clients. The KIID (the 2 page document)
will offer essential information on financial
products so that a private investor may be able
to compare and choose among various financial
products on the basis of risk, profiles or fees. The
PRIPs are likely to be implemented at the same
time as the reviewed MIFID, thus offering a high
level benchmark for offering financial investment
services in the EU.
Post-trade
If the EU Commission worked rapidly on the
pre-trade and trade level, it was not resting on
its laurels in post-trade. In September, the EU
Commission, in dogmatic line with the G20 agenda,
proposed a draft regulation on a European
status for clearing-houses that would have to
accept the maximum number of OTC traded derivatives.
The regulation also introduces the concept
of Trade Repositories (i.e. big data bases for
OTC derivatives). The objectives of the European
Market Infrastructures Regulation (EMIR) are to
be effective as of 1 January 2013, so as to comply
with the international agenda. The industry is
cautiously supportive of the project, because it
may bring an objective source of post-trade data
20 January 2010
ABBL Response to the Communication from the Commission
on an EU Framework for Cross-Border Crisis Management in
the Banking Sector.
ECOFIN: Luxembourg and Austria agree to directive on mutual
assistance in the recovery of taxes.
Conference Board: Luxembourg ranks 1 st in labour productivity.
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