Anti-price discovery tax

This week saw the publication of the European Parliament’s amendments to the EU Financial Transaction Tax (FTT). As reported in the press, lower rates (until 2017) for sovereign debt and pension funds have found their way into the proposal. Unfortunately, some very unpleasant surprises crept in as well. According to the Parliament, firms engaging in high frequency trading have to pay FTT not only on successful execution transactions, but also on order cancellations! Regulators... Read More

UCITS V – the debate rumbles on

The European Parliament vote on amendments to the UCITS IV Directive has been delayed. UCITS V, as it will be known, covers three main themes: depositary functions, regulatory sanctions and remuneration requirements. It’s the latter that no one can agree on, with bonus payment caps proving particularly contentious. Sven Giegold, the European Parliament’s Rapporteur on UCITS, asked for the vote to be postponed to the first week of July because there are continuing political... Read More

Is it that time already?

It’s a little over a year since the introduction of European Short Selling regulation and already it’s time for the European Commission to prepare its review. With its report due by the end of this month, the Commission has asked ESMA to provide some technical advice. Not surprising to practitioners, but maybe to politicians, ESMA observed mixed effects on liquidity and a slight decrease in price discovery related to short selling bans. In a separate paper, the Spanish... Read More

MiFID II takes a leap forward

Hurrah! Looks like the Council of the EU has finally agreed a common approach on MiFID II/MiFIR after 18 months of negotiations. Subject to EU formalities next week, yesterday’s agreement comes just two weeks before Ireland hands the Council presidency on to Lithuania. The trilogue process – European Commission vs European Parliament vs Council versions – can now get going in earnest. The pressure will be on to reach agreement on a Level 1 text by early 2014 at the... Read More

Uncertainty abides amidst a flurry of CFTC activity

It’s a busy – not to mention dramatic and uncertain – time for U.S. derivatives regulation. Consider the milestone of final SEF rules and yesterday’s “Category 2” clearing deadline. Consider, too, the on-going uncertainty as to the pending expiration of the exemptive relief on Dodd-Frank’s cross border rules (also known as ‘extra-territoriality, or ‘ET’). CFTC Chairman Gensler remains a strong advocate for ET, despite the... Read More

Half a job

MiFID, the mother of all European financial regulation, rumbles on and on. The European Commission’s MiFID II consultation in 2011, the Ferber Report in March 2012, and the European Parliament vote in October 2012 were all highly anticipated and widely reported on. But despite the fact that the Council of Ministers has published more than 20 different drafts during the Cyprus and Ireland presidencies alone, it’s still unlikely that we’ll see a final text before... Read More

Double whammy

The latest published version of MiFIR is narrowing waivers, while widening its impact. Specifically, it has added a double cap limit to the pre-trade transparency reference price waiver. Limitations that may apply to the 4 existing waivers continue to evolve even as the Irish presidency of the Council of the European Union enters its final month before handing over to Lithuania. Article 4 a) was added to the text in December last year and has since switched between the use of... Read More

Copyright © 2018 Fidessa group plc. All rights reserved.

The information contained within this website is provided for informational purposes only. Fidessa will use reasonable care to ensure that information is accurate at the time it is made available, and for the duration that it remains on the site. The information may be changed by Fidessa at any time without notice. We also reserve the right to close the website at any time. No representation or warranty, expressed or implied, is given on behalf of Fidessa or any of its respective directors, employees, agents, or advisers as to the accuracy or completeness of the information or opinions contained herein or its suitability for any purpose and, save in the case of fraud, all liability for direct, indirect, special, consequential or other loss or damages of whatever kind that may arise from use of the website is hereby excluded to the fullest extent permitted by law. Any decisions you make based on the information in this website are your sole responsibility and information on the website should not be relied upon in connection with any investment decision.

The copyright of this website belongs to Fidessa. All other intellectual property rights are reserved.

Reproduction or redistribution of this information is prohibited except with written permission from Fidessa.