Danuta Hübner MEP (EPP, Polish) presented her draft reports on the introduction of a ‘single consolidated tape’ and on the revision of the Markets in Financial Instruments Directive (MiFID) to the Parliament’s Committee on Economic and Monetary Affairs (ECON) on Monday 10 October.
Adopted in November by the European Commission, this package of measures aims to ensure greater transparency in capital markets, a level playing field between different exchanges and investment banks, and to promote the international competitiveness of European markets (see EUROPE 12840/6).
“The second MiFID revision was supposed to reduce fragmentation, but little has been achieved”, Hübner lamented. This makes it important, she said, to level the playing field, increase the international competitiveness of European companies and encourage consumer participation.
“The consolidated publication system is not a panacea, but it is hoped that it will reduce the cost of access, give more visibility to small stock exchanges, mandate the contribution of market data and single consolidated tape providers for each class of assets”, she stressed. She proposes a two-step approach: first with bonds and equities, then with derivatives.
Germany’s Nicola Beer, represented by Engin Eroglu (Renew Europe, German) welcomes the creation of this consolidated publication system, but does not want to include all classes of assets. “We prefer a phased approach”, Eroglu explained.
Eero Heinäluoma (S&D, Finnish) also supported the measure as “a benefit for ordinary investors”. However, he asked the European Commission to give more details of its exact design in the interests of transparency. “Investor protection is our main concern, retail investors should be at the centre of attention”, he insisted.
Ms Hübner also wants to give ESMA time to select and authorise the providers of the consolidated system. As for the transparency rules, which she considers very complex, she proposes a rebalancing by giving ESMA the task of establishing the exact thresholds and limits applicable in the standards.
To reassure regulated market professionals, who are concerned about the impact this system could have on their business model, she drafted an amendment introducing an optional contribution for small regulated markets based on two criteria: their relative size and their contribution to fragmentation. “But I still believe that the inclusion of all EU regulated markets in the system would favour smaller markets and investors and increase the attractiveness of the capital markets union”, she concluded.
Draft report on the establishment of a consolidated publication system: https://aeur.eu/f/3jz
Draft report on the MiFID review: https://aeur.eu/f/3k0 (Original version in French by Anne Damiani)