Issue no. 22: ICMA Regulatory Policy Newsletter

MiFID review
The ICMA Regulatory Policy Committee (RPC) recently
discussed the review of the Markets in Financial Instruments
Directive (MiFID). It noted that there have been no material
developments in ICMA’s position since the submission made
in January (see Regulatory Policy Newsletter, Second Quarter
2011). The European Commission’s proposals continue to
be awaited, with the latest information being that these are
now not expected to be forthcoming until October.
ICMA is working on its links with other trade associations,
including national associations such as the BWF and the
DSDA – present as guests at this RPC meeting. Analysis is
being conducted to see where there are matters upon which
associations are clearly in agreement or clearly disagree. To
the extent there are matters falling between these positions
there will then be some further debate to see if common
ground can be found on them or not. In those areas where
there is agreement, the aim will be to present coordinated
views on the MiFID text.
In our discussions with other associations, ICMA will be
guided by the positions set out in our response to the
Commission consultation which we submitted in February. In
the submission, ICMA:
•
•
•
encouraged the Commission to consider the full
implications of its proposals;
proposed to expand the definition of “admission to trading”;
recommended that the Commission excludes money
market instruments from MiFID;
• asked the Commission to accommodate bilateral trading
and hybrid systems within the “organised trading facility”
(OTF) category;
• called for the scope of the non-equity pre-trade
transparency framework to be limited to large investment
grade bond issues;
•
supported CESR’s recommendation not to introduce
mandatory pre-trade transparency outside the equity market;
• advocated that the post-trade transparency framework
be based on high/low/median prices published at the
end of the day, with appropriate delays to accommodate
the unique nature of the bond market and phased
implementation of the new requirements;
•
SECONDARY MARKETS
agreed that title transfer collateral for retail clients should
be properly managed, but not prohibited; and
• offered to assist in the development of any further proposals
in respect of the underwriting and placing process in the
primary market.
A group of associations, including ICMA, wrote to Commissioner
Barnier on 14 March, emphasising that allowing investors
choice was compatible with transparency, safety and efficiency.
The full text of the letter can be found here:
At ICMA’s Annual General Meeting in Paris, Stephen
Maijoor, the Chair of ESMA, emphasised the role of market
transparency as follows:
“As regards market transparency, MiFID already includes
a regime for pre- and post-trade transparency for shares
admitted to trading on a regulated market, wherever the
trading takes place. When CESR advised the Commission
on the MiFID review, we suggested measures to enhance
the quality, timeliness and consolidation of post-trade
transparency data. We also recommended introducing a
similar regime for other financial instruments such as corporate
and government bonds, certain structured finance products
and all kinds of derivatives including CDS. The Commission
followed our recommendations in its consultation on the
MiFID review.”
The full text of Mr Maijoor’s speech can be found here.
Contact: John Serocold
john.serocold@icmagroup.org
ICMA Regulatory Policy Newsletter Third Quarter 2011 | 23