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Deutsche Börse AG issued the following statement regarding the publication of the legislative amendment proposal to the revised Markets in Financial Instruments Directive (MiFID) by the EU Commission’s DG Internal Markets and Services:
We support the goals of MiFID and thus welcome today’s publication of the MiFID amendment proposal. We believe it will lead to safer, sounder and more transparent financial markets in Europe, thus contributing to the G20 commitment from September 2009. Foremost, we agree with EU Commission’s proposal of mandatory trading of derivatives on organized trading venues, and improved trading transparency across a broad range of financial instruments including derivatives. This will align European regulatory efforts with the respective requirements in the US outlined by the Dodd-Frank Act. Further, we support the goal to design rules on organizational requirements, transparency and authorization of OTFs such that there are no loopholes to achieve the desired outcome of more organized trading of OTC derivatives.
“As regards derivatives markets, we very much welcome the suggestions proposed by the EU Commission to extend pre- and post- trade transparency to derivatives, and to bring more derivatives trading onto organized venues such as Regulated Markets, MTFs and OTFs, thereby strengthening competition. The higher the degree of organized trading, the higher the likelihood that these products can be facilitated by central clearing and trading infrastructures and the lower the degree of systemic risk. In our opinion, the ultimate goal should be that all trading venues need to comply with MiFID market rules,” said Andreas Preuss, Deputy CEO Deutsche Börse and CEO Eurex.
Deutsche Börse also pointed out that publication of this amendment proposal today marked only the starting point. In the coming two years, the MiFID will be subject to an extensive review within the ordinary legislative procedure, i.e. the proposal will be reviewed and amended by the European Parliament and European Council. The timeline for Council and Parliament processes will not be specified until November 2011. The final adoption of MiFID revision can be expected for end of 2012/2013.
