MiFID 1 (Directive 2004/39/EC) introduced a set of principles and rules on best execution, taking into account price, costs, speed, likelihood of execution and settlement, size, nature or any other consideration relevant to the execution of the order. These rules were supplemented by level 2 measures (Article 44 of the Directive 2006/73/EChttp://www.esma.europa.eu/system/files/Dir___73_2006.pdf) detailing the criteria
In its latest Newsletter, Better Markets reflects on Obama’s State of the Union speech of 21st January 2015. The Washington DC based public-interest organization applauds Obama’s resolve to use his veto to prevent attacks to weaken or kill financial reform: As the President recognizes, it is vital to the strength of our nation that financial
On Wednesday November 9 the Council issued a negotiating mandate for the revision of the Directive on Institutions for Occupational Retirement Provision (IORP II). Focusing on four objectives, this mandate unifies the position of all 28 Member States and gives a green light to negotiations with the parliament. The four objectives of the negotiating mandate
On Sunday October 26, the results of the recently conducted stress tests were published. The European Central Bank (ECB) tested 130 Eurozone banks, 25 of which failed the test. The European Banking Authority (EBA) had a look at 123 banks EU-wide, with 24 institutes failing its test. As some commentators suggested, the test was just
On 5 September, a group of former ESFG (Espírito Santo Financial Group) shareholders – who believe they were harmed by the sale of the company – initiated a civil case against Tranquilidade, a sub-holding insurance company that formed part of Espírito Santo Financial Portugal and is to be sold to the Apollo Global Management fund,
The vicious cycle: “central banks cut interest rates in an attempt to breathe new life into markets, which in turns creates incentives for more risk-taking, generating ever bigger crises that will require monetary stimulus over and over again”. Since the financial crisis, Bill White -economist at the Bank for International Settlements (BIS) – has been ringing the alarm bell to warn of the risks of this kind of economic policy. The results are here for
The long-awaited Markets in Financial Instruments Directive (MiFID) II will enter into force on January 2nd 2017. This new piece of legislation represents the European Commission’s attempt to reform the capital markets after the financial crisis and to update the 2007 Markets in Financial Instruments Directive and aims to take into account new features of the market such as fragmentation,
Following the launch of a consultation on April 15, ESMA will now open three hearings on MiFID/MiFIR taking place on July 7 and 8 in Paris. Open hearings will be hold on the markets issues, investor protection issues and commodity derivatives as set out in its Discussion paper and Consultation paper on MiFID II/MiFIR. The hearings will be
Bank of America, the second-largest U.S. bank, agreed to pay $9.3 billion to settle a lawsuit arising out of troubled mortgage-backed securities it cobbled together and sold to several federal housing agencies such as Fannie Mae and Freddie Mac. The settlement, announced on Wednesday, includes $6.3 billion in cash and $3.2 billion in securities that Bank
Last week’s voting on the draft proposal of the Insurance Mediation Directive (IMD) at the European Parliament sets the tone for the loosening of rules controlling the sale of pension products. However the idea of “more light shining on the existing high cost of insurance sales” is very much appreciated by the German Green Party and