MiFIDII/ MiFIR review – EFAMA-BVI-EFSA-NSA priorities

In the context of the ongoing MiFIR negotiations in the EU Parliament (EP), NSA, EFAMA, BVI, EFSA, and other European trade groups that represent EU capital markets have been lobbying for their positions on the Commission proposal to strengthen market transparency in MiFID/MiFIR. This is because the EP wants to reach an agreement on MEPs‘ amendments to rapporteur Danuta Hübner’s proposals on the Commission proposal by February 2023. On 20 December 2022, the EU Member States had already agreed on the Council’s negotiating position for the MiFID/MiFIR dossier.
The associations sent joint positions in a letter to the parliamentarians involved in the procedure on the following topics:
+ Real-time ticker for shares and pensions (Creating an EU consolidated tape to bridge EU capital markets).
+ Improved regulation of market data costs (Market Data cost must be properly addressed at level 1 and level 2)
+ Reforming the transparency regime for equity in a pragmatic way
+ Pension trading transparency (Preserving the precarious balance of the transparency regime for non-equity)
+ Definition of systematic internaliser
+ Abolishing the best-execution reporting constraints of MiFID/IFD firms (Alleviating investment firms‘ best-execution reporting constraints)
+ Abolishing SI reporting (Modification of the existing SI reporting regime)
+ No introduction of fund transaction reporting (Modification of the transaction reporting regime (extension of Article 26 reporting)).
+ Defining precisely scoped in practices for payment for order flow (PFOF)
The associations expect that there could be improvements in the further procedure with regard to revenue sharing in the pension tape, the deletion of the Article 26 transaction and the RTS 28 best execution reports of asset managers, as well as the strengthening of the market data cost provisions in Article 13 MiFIR.