Brussels, 20/09/2010 (Agence Europe) - The review of Directive 2004/39/EC on markets in financial instruments will seek to increase transparency, encourage responsible risk management and remove conflicts of interest, European Internal Market Commissioner Michel Barnier told a conference on the review of the MiFID on Monday 20 September. He set out four principles which will guide the Commission as it drafts a legislative proposal to be presented in the first quarter of 2011: - responsible financial players; - increased transparency on bond markets and, in particular, derivatives markets, and on dark pools; - rules on fair competition; - restoration of the trust of economic players in the markets and financial intermediaries.
Barnier also spoke of raw materials markets: “The revision of MiFID is one of the key elements of an ambitious reform of raw materials markets. It is not possible to improve the functioning of these markets without addressing both aspects relating to the underlying commodities and the financial instruments and markets which all play a significant role in price evolution”. In this area, legislative work is structured thus: - the forthcoming European legislation on derived financial products will have an impact on raw materials-based derivatives; - the review of MiFID will seek to enhance the transparency of transactions, provide a better framework for organised markets which play a key role in price discovery of raw materials, and increase controls; - Directive 2003/6/EC on market abuse will be extended so as to make raw materials markets safer and strengthen how they are controlled and supervised; - the new European Securities Markets Authority (ESMA), provided for in the financial supervision legislative package, will draft common operating rules and will promote coordinated supervision of these rules in Europe. Tackling raw materials price volatility is one of the priorities of the French Presidency of the G20 in 2011 (see EUROPE 10204). (M.B./transl.rt)