ISDA's response to the MiFID Review consultation stresses:
- any changes should reflect the flexibility and choice the current regime offers;
- the Commission must appreciate that cash, futures and OTC derivatives markets are complementary, and any changes must allow for the diversity of execution models;
- prescriptive pre-trade transparency could undermine the functioning of OTC markets;
- any decision to amend the existing exemptions from MiFID must take full account of the consequences of bringing additional firms within MiFID; and
- there is no need to change client categorisation rules in relation to product types and the current presumption of knowledge and experience of professional clients should stay.
(Source: ISDA's response to the European Commission's Public Consultation on the Review of the Markets in Financial Instruments Directive (MiFID))