On 13 April 2010, CESR published three consultation papers on technical advice that address areas of MiFID where it has identified a need for improvement:

  • Investor protection and intermediaries. The main topics covered in this consultation paper are: (1) Requirements relating to the recording of telephone conversations and electronic communications. (2) Execution quality data (Article 44(5) of the MiFID Level 2 Directive). (3) MiFID complex vs. non-complex financial instruments for the purposes of the Directive’s appropriateness requirements. (4) Definition of personal recommendation. (5) Supervision of tied agents and related issues. (6) MiFID options and discretions.
  • Equity markets. The main topics covered in this consultation paper are: (1) Pre-trade transparency regime for regulated markets and multilateral trading facilities. (2) Definition of and obligations for systematic internalisers. (3) Post-trade transparency regime. (4) Application of transparency obligations to equity-like instruments. (5) Regulatory framework for consolidation and cost of market data. (6) Regulatory boundaries and requirements, inconsistencies which may have impacted the level playing field. (7) MiFID options and discretions.
  • Transaction reporting. The amendments proposed in the consultation paper focus on: (1) The introduction of a third trading capacity (riskless principal). (2) Collection of client and meaningful counterparty identifiers. (3) Standards for client and counterparty identifiers. (4) Client ID collection when orders are transmitted for execution. (5) Transaction reporting by market members not authorised as investment firms.

The deadline for comments on the consultation papers is 31 May 2010.

CESR will be holding a public hearing on 17 May 2010 at its offices in Paris. CESR intends to publish the feedback statements for the consultation papers and provide its final advice to the Commission by 31 July 2010.

View CESR Technical Advice in the context of the MiFID review - Investor Protection and Intermediaries , 13 April 2010

View CESR Technical Advice in the context of the MiFID review - Equity Markets, 13 April 2010

View CESR Technical Advice in the context of the MiFID review - Transaction Reporting, 13 April 2010

View CESR begins the process to overhaul MiFID by consulting on policy options, 13 April 2010

View Commission letter: Request for additional information from CESR in relation to the review of MiFID, 13 April 2010