EBF has published a position paper with its preferences on the legislative options that will be discussed during trilogue negotiations on the recast Markets in Financial Instruments Directive (MiFID 2) and related Regulation. It asks for:

  • the scope for Organised Trading Facility (OTF) operators to use proprietary capital in that OTF be extended to corporate bonds, in addition to the illiquid sovereign bonds already introduced in the Council's general approach;
  • a definition of OTC derivatives that avoids extending the trading obligation to illiquid financial instruments;
  • retaining MiFID 1 pre-trade transparency waivers, without the caps introduced by the Council;
  • flexibility, as defended by EP, for Member States on a possible ban on inducements to independent financial advisers and portfolio managers; and
  • an exemption from the requirement to set up a branch where the third country firm is providing services to retail clients who have asked to be treated as professionals.

(Source: EBF Trilogue Position on MiFID 2/MiFIR)