EFAMA – EFSA Joint Statement on EU Commission proposal for revised Market in Financial Instrument Regulation (MiFIR)
EFAMA and EFSA see great value in the creation of a consolidated tape to support Europe’s capital markets. However, they qualify that statement with a reminder that the framework for a successful consolidated tape should
i) address the known market failure around market data costs,
ii) manage the costs of the tape by limiting compensation for data contributors to the cost of production,
iii) simplify transparency requirements without harming the balance between transparency and liquidity, and
iv) support rather than limit competition between execution venues as introduced with MiFID I and MiFID/MiFIR.
They would also like to emphasise that several of the reform proposals for both equities and non-equities transparency regimes are based on expected benefits that have not been subjected to much needed in-depth analysis, and a comprehensive impact assessment.
Read the Joint Statement here.