In April, 2010 CESR published three consultation papers which were seen by industry as a steps towards reviewing and amending certain aspects of MiFID. The consultation papers included proposed technical advice by CESR on investor protection and intermediaries (CESR/10-417), equity markets (CESR/10-394) and transaction reporting (CESR/10-292).
The consultation papers addressed areas of the MiFID legal framework needing improvement, including quality, cost and consolidation of post-trade transparency data and delays in the publication of such data.
CESR published its recommendations to the European Commission in late July, which related to key issues both CESR and market participants had identified. The recommendations take into account market developments since MiFID was originally drafted and full details of which can be read at http://www.cesr.eu/popup2.php?id=7009 .
A senior regulator with the FSA in the UK has been chosen to chair a committee of 16 experts from European stock markets, execution venues and investment banks to work with CESR by assisting it advise the European Commission who will then go and draft MiFID 2.
It is expected that MiFID 2 will take effect in 2012 and is aimed at tightening the rules that govern stock exchanges, electronic trading systems, investment banks and high frequency trading hedge funds.
Please contact a member of the Regulatory and Compliance Department in Dillon Eustace should you need further information on MiFID 2.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
