FESE has responded to the Commission’s MiFID Review consultation. Its major comments are:

  • the proposals focus too much on trading without considering the impact of trading on other aspects of the economy;
  • there is not enough analysis of the facts in the consultation, nor enough information and analysis on the problems encountered with the current version of MiFID;
  • the paper does not address the current mismatch between MiFID and the transparency parameters set by (then) CESR;
  • the paper is not inclusive enough of addressing choices in some areas so it appears options have not been fully considered (for example, why does the Commission want to create a new trading category for trading outside MiFID equity venues?);
  • in some places, the focus is too narrow: in particular, the consultation does not take into account important parts of the (then) CESR advice on the benefits of standardisation of OTC derivatives; and
  • the planned timetable for issuing a legislative proposal (in May 2011) is unlikely to give the Commission enough time properly to analyse the responses it receives to its consultation.

(Source: Response of the Federation of European Securities Exchanges (FESE): European Commission Public Consultation on the Review of the Markets in Financial Instruments Directive (MiFID))