The Commission’s intention is to review specific parts of MIFID II – including establishing a consolidated tape, which is welcome – but once the file is open to co-legislators it will be hard to limit the changes.
Kay Swinburne, Vice Chair of Financial Services KPMG: “The Commission’s intention is to review specific parts of MIFID II – including establishing a consolidated tape, which is welcome – but once the file is open to co-legislators it will be hard to limit the changes. Without the UK at the table, points relating to non-discriminatory access could be at risk, such as open access on trading venues and CCPs. The UK argued for open and competitive access but some other member states were not in favour. In my opinion, the high cost of post-trade services in the EU, which are ultimately borne by the end investor, won’t go down if competition is not facilitated by enabling choice.
“The Commission’s review of whether the consumer protection rules are fit-for-purpose, especially as they relate to professional investors, is also welcome. It is clear that the many disclosures aimed at retail clients are not needed by professional managers.
“Further, reopening the debate on commodities and the position limit regime will no doubt be as political as ever and will generate huge involvement from non-financial services parties. Balancing these vested interests will be difficult.
“The UK will be keeping a keen eye on how MIFID evolves and will need to consider carefully whether it implements any of the proposed changes. When MiFID II was being negotiated, the UK sought to ensure that the views of other key regulators, like the US SEC, were considered. The UK will wish to continue to take into account the global perspective in its own rule-making.”
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