Exchanges and the over-the-counter (OTC) market might have moved a little closer in recent years, but it is far from inevitable that demand for greater trading clarity will push a sizeable chunk of the market away from OTC. On one hand, FXSpotStream CEO Alan Schwarz said: "the FX market continues to do a good job
Transparency Task Force is holding an online event, to draw attention to the collective redress action by Stichting Investor Loss Compensation (SILC) for individual Airbus investors who have incurred damages, and to discuss the “Power of Class Actions to get Justice”. The event is scheduled for Tuesday, July 4th, between 6:00 PM and 7:30 PM
Retail trading must be simple, transparent, cost-efficient, and done in the best possible conditions for individual, non-professional (“retail”) investors. To achieve this, BETTER FINANCE puts forward a series of recommendations in relation to best execution of retail orders and payments for order flows (PFOF or, more adequately PFROF: Payment for retail order flow). Payments for
Summary: General comment The review of the MiFID II framework is timely and should be coordinated with the other ongoing actions and policy areas, i.e. PRIIPs and the work done in the Forum on the Future of the Capital Markets Union. In addition, to ensure a level playing field, the European Commission should also adopt
BETTER FINANCE continues to express deep concern about the unwanted “side-effects” of the MiFID 2 regulatory framework on “lit” equity trading in the EU. Below is the summary response to the ESMA Public Consultation on the review of the MiFID 2 and MiFIR transparency regime for equity and equity-like instruments, the double volume cap mechanism
DATE Publication and Article Title (with links) 26/01/2018 FT – Slippage causes confusion in Mifid II fund rules row 05/02/2018 Les Echos – La réforme de l’épargne-retraite divise les professionnels 08/02/2018 La Libre – PRIIPs Un règlement qui trompe linvestisseur 14/02/2018 Law360 – Blocwide Pensions Don’t Prevent Dangers, Groups Warn 04/03/2018 Financial News – Asset
Earlier this week, the the European Capital Markets Institute released two valuable research reports on aggregate indicators of the Capital Markets Union, both domestic and in comparison to three other mega-economies of the world. The reports focus on five key sectors in the EU-28 capital markets: equity, debt securities, exchange-traded derivatives, over-the-counter derivatives and mutual
In principle, European individual Investors welcome the introduction of the new Markets in Financial Instruments Directive (MiFID II). However, given BETTER FINANCE’s priority to ensure the protection of individual European savers and investors, we are concerned about the shrinking share of regulated securities markets in the EU, now down to around 50 % of transactions,
BETTER FINANCE supports the idea of moving trading from OTC markets to regulated trading venues, and of the differentiation between bilateral and multilateral trading activities in order to protect the price formation process on transparent regulated venues and be able to have a real level playing field.
MiFID II remains the main topic in terms of EU financial legislation despite a possible delay in implementing new rules covering European financial markets according to Jake Green, partner in the financial regulatory group dealing with corporate practice at law firm Ashurst in London. Green told Markets Media: “Some buyside clients are holding back preparations
The Czech Presidency of the Council tightened plans for an EU-wide ban on a controversial stock-trading practice despite opposition from the German government. Last Monday, governments were able to see the draft ban on “payment for order flow”. The text states that investment firms “shall not receive fees, commissions or non-monetary benefits from third parties
Yesterday Oxera released a report entitled “The design of equity trading markets in Europe – An economic analysis of price formation and market data services” commissioned by the Federation of European Securities Exchanges (FESE). Through this research, FESE is seeking to inform the debate on the design of equity trading markets in Europe, particularly when
Despite the attempts to channel equity trading to the “lit” markets, more than half of European stock is bought and sold through “dark pools”. BETTER FINANCE has long criticised its negative effects on transparency and pricing, promoting the need to restore confidence in financial markets. Attempts to regulate the financial markets and instruments have already
The newly applicable provisions of MiFID II on reporting duties also concern financial transactions of Exchange-Traded Funds (ETFs). Considering that the majority of initial ETF trading (primary dealing or creation) takes place directly between market makers (such as credit institutions – buyers) and authorised participants (distributors), the upstream market for ETFs is made through over-the-counter
The European Central Bank and the central banks of the Eurozone launched a common European platform for the settlement of securities transactions called Target2-Securities (T2S). Due to integration of central securities depositories into a common European platform, the Central Securities Clearing Corporation (KDD) in Slovenia is terminating all accounts that do not have a designated
Today the European Commission proposed the long-awaited financial market reform aimed at banning proprietary trading by the largest banks and thereby protect taxpayers from the potential costs of rescuing them. The proposal aims to remodel bank structures in order to reduce complexity and curb market speculation supported by state-backed deposits. Only banks whose assets are above
European lawmakers have called off a controversial vote that would have led to further delays implementing reform of the region’s derivatives markets, following strong pressure by the European Commission. Leading parliamentarians agreed on Thursday to withdraw a motion just hours before it was set to go to all 750 members of the European Parliament. If
Following the Financial Times article on “Probes into forex trading” by Daniel Schäfer and Caroline Binham, Guillaume Prache, Managing Director EuroFinUse, showed his concerns regarding the lapse in public supervision , which has been going on far too long, in a letter to the newspaper. With a quadrillion dollars (that’s 1 followed by 15 zeros)
EuroFinuse comments on the issue, "that some asset managers appear to be engaging in dubious – and potentially illegal – in-house trades to protect funds facing heavy redemptions from having to sell assets at fire-sale prices". Internal cross-trading between funds however, is not illegal. Guillaume Prache, Managing Director of EuroFinuse states in the Financial Times
EuroFinuse comments on the issue, "that some asset managers appear to be engaging in dubious – and potentially illegal – in-house trades to protect funds facing heavy redemptions from having to sell assets at fire-sale prices". Internal cross-trading between funds however, is not illegal. Guillaume Prache, Managing Director of EuroFinuse states in the Financial Times that
On the 21st of January 2022, the European Financial Reporting Advisory Group (EFRAG) announced that its General Assembly had selected BETTER FINANCE as one of its new members. This represents a further improvement of EFRAG’s governance and its opening to individual investors, consumers, and other stakeholders from civil society. Since 2017, and up to last
BETTER FINANCE is pleased to announce its support for the Keep Me Posted campaign. European citizens as users of financial services should have the right of choice of how they want to receive their information (paper or digital version) at no extra costs. Read the full Press Release here
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