Review of the Markets in Financial Instruments Regulation (MiFIR) (consolidated tape)

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EMSK arvamus: Review of the Markets in Financial Instruments Regulation (MiFIR) (consolidated tape)

Key points:

The EESC

  • supports the European Commission's proposal to establish consolidated tapes for the following asset classes:  shares, exchange-traded funds, bonds and derivative financial instruments. This proposal is part of the 2020 Capital Markets Union action plan and is another step towards making the Capital Markets Union a reality;
  • reiterates that establishing the Capital Markets Union is a priority and an important prerequisite for creating a genuine single market, for overcoming the consequences of the COVID-19 pandemic, and for transitioning to a sustainable economy in Europe;
  • welcomes a proposal that, if well implemented, will significantly increase the transparency and availability of market data, align the regulatory framework conditions for execution venues, and strengthen European capital markets. Besides, consolidated transparency will mitigate the effects of their high fragmentation;
  • attaches great importance to ensuring non-discriminatory, free access to market data for all, in particular small and medium-sized enterprises and retail investors in general, and calls to reduce information asymmetries;
  • recommends that the European Commission undertake more action to further develop the equities culture, which remains uneven across Europe. In addition, preventive rules on consumer protection should be accompanied with measures to improve consumer education. The measures for the completion of the Capital Markets Union should give importance to aspects of occupational health, safety and working conditions. This includes ensuring that the human resources of European and national supervisors reflect the increase in their remit;
  • recommends strengthening the following principle with regards to the controversial issue of a ban on receiving payments for the transmission of client orders for execution purposes or payment for order flow (PFOF): financial intermediaries may only select the trading venue or counterparty for the execution of their clients' transactions with a view to achieving the best execution for their client.