Responses to call for evidence on non-equities markets transparency

Article 65(1) MiFID requires the European Commission to report to the European Parliament and the Council on the possible extension of the scope of the pre- and post-trade transparency obligations to transactions in classes of financial instruments other than shares.

In August 2006 the Commission sent a letter to CESR requesting assistance with its work under Article 65(1) MiFID. The Commission’s initial request to CESR was limited to a fact finding exercise in relation to cash bond markets. In November 2006 CESR provided the Commission with its response which included only factual information.

The Commission then requested further technical advice from CESR. This advice is to be provided by the end of June 2007. The request for technical advice focused primarily on cash bond markets and consideration of the following six questions:

  • Does CESR consider there to be convincing evidence of market failure with respect to market transparency in any of the instrument markets under review?
  • What evidence is there that mandatory pre- and post-trade transparency would mitigate such a market failure?
  • To what extent can the implementation of MiFID be expected to change this picture?
  • Can CESR indicate and describe a significant case or category of cases where investor protection has been significantly compromised as a result of a lack of mandatory transparency?
  • Could it be feasible and/or desirable to consider extending mandatory transparency only to certain segments of the market or certain types of investors?
  • What criteria does CESR recommend should be applied by the Commission in determining whether self-regulatory solutions are adequate to address any of the issues above?
  • On 6 February 2007 CESR issued a call for evidence regarding transparency on bond markets and in particular the six questions raised by the Commission. The call for evidence closed on 6 March 2007 and CESR has now published the responses that were submitted.

 

Responses to CESR consultations on transaction reporting and best execution

Transaction Reporting

On 2 February 2007 CESR published a Consultation Paper on Level 3 Guidelines on MiFID transaction reporting. The Consulation Paper was followed by an open hearing in Paris on 1 March 2007. The consultation then closed on 2 March 2007. CESR has now published on its website the responses to the consultation.

Best Execution

On 2 February 2007 CESR published a Consultation Paper on best execution under MiFID. The consultation closed on 16 March 2007. CESR has now published on its website the responses to the consultation.