BBA’s European Securities Forum Thursday, 12th October 2006 Implications of MiFID For Exchanges...
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BBA’s European Securities Forum Thursday, 12th October 2006 Implications of MiFID For Exchanges Burçak Inel Head of Regulatory Affairs Federation of European Securities Exchanges Brussels, Belgium www.fese.org
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Transcript of BBA’s European Securities Forum Thursday, 12th October 2006 Implications of MiFID For Exchanges...
BBA’s European Securities Forum Thursday, 12th October 2006
Implications of MiFID For Exchanges
Burçak InelHead of Regulatory AffairsFederation of European Securities Exchanges
Brussels, Belgiumwww.fese.org
About FESE
Key features of MiFID
Publication of Data
Process
Conclusion
FESE at a Glance
• 24 Members– Representing 36 exchanges
• FESE Secretariat– Based in Brussels, Belgium– Secretary General: Judith Hardt
• FESE MiFID Task Force– Chairman: Ludovic Aigrot– Actively contributing to legislative process
About FESE
About FESE
Key features of MiFID
Publication of Data
Process
Conclusion
FESE Members
About FESE
About FESE
Key features of MiFID
Publication of Data
Process
Conclusion
FESE Members
About FESEMarket Value > 10,000 billion EUR
Turnover1 > 17,000 billion EUR
1Turnover is defined in FESE Statistic Methodology as the total number of shares traded multiplied by their respective matching prices.
Liquidity pool
An
nu
al Tu
rnover
EU
R B
illion
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2
4
6
8
10
12
14
16
18
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005
0%
50%
100%
150%
200%
250%
300%
Mark
et
Cap
. G
row
th %
Annual Turnover
EUR BillionMarket Cap. Growth
About FESE
Key features of MiFID
Publication of Data
Process
Conclusion
MiFID: Key features related to markets
• COB including Best Execution
• Rules for RMs and MTFs
• Choice among execution venues
• Transparency requirements
• Publication and consolidation of data
Key features of MiFID
About FESE
Key features of MiFID
Publication of Data
Process
Conclusion
New framework for market operators and Regulated Markets• Management requirements• Operating rules• Access and Remote membership rules• Rules concerning admission to trading• Enforcement of compliance with EU law
on prospectuses, Market Abuse and Transparency obligations
• Requirements regarding pre- and post-trade transparency of RM
Key features of MiFID
About FESE
Key features of MiFID
Publication of Data
Process
Conclusion
New framework for execution of orders
• Venues:– RMs– MTFs– Systematic internalisers– Other OTC
• Key principles:– Choice for investors – Level playing field– Price transparency
Key features of MiFID
About FESE
Key features of MiFID
Publication of Data
Process
Conclusion
Publication of Data
• Pre-trade & Post-trade• Diversity of channels • Basic requirements• Perspective of FESE members
– Importance of transparency to our markets– Technical standardisation to be left to market
forces– Potential usefulness of CESR L3 work to ensure
quality of data– Exchanges ready to help other venues to
comply with MiFID
Publicationof Data
About FESE
Key features of MiFID
Publication of Data
Process
Conclusion
Process
• Member States: – Transposition by Jan. 2007
• European Commission: – Working with the MSs during transposition– “Interpretative guidelines” & “Communications”– Enforcement
• CESR:– L3 guidance/supervisory convergence
• Industry: – Application by Nov. 2007
Process
About FESE
Key features of MiFID
Publication of Data
Process
Conclusion
Art. 65 and Level 2 reviews
Inter alia:• Transparency Extension (L1 Art. 65.1)
– 31/10/2007
• Article 27 MiFID (L1 Art. 65.2)– 31/10/2008
• Consolidation of information (L1 Art. 65.4)– 30/4/2008
• Best Execution data (L2 Dir. Art. 44.5)– 31/10/2008
• Block Trades (L2 Reg. Art. 40.3)– 31/10/2009
Process
About FESE
Key features of MiFID
Publication of Data
Process
Conclusion
Conclusion
FESE members:• Support principles of greater competition
and integration• Welcome the opportunity to serve their
clients better in a more competitive & integrated market
• Are ready to help other execution venues comply with MiFID
• Will contribute to CESR L3, national transposition and Commission’s convergence and evaluation work.
Conclusion
About FESE
Key features of MiFID
Publication of Data
Process
Conclusion
Contact details:Burçak InelHead of Regulatory Affairs Federation of European Securities Exchanges AISBLAvenue de Cortenbergh 521000 Brussels Tel: +32 2 551 01 82GSM: +32 496 34 47 88Fax: +32 2 512 49 05
[email protected] www.fese.eu
Conclusion
