News Centre

FESE Position On Equity Market Structure & Data

Date 15/02/2021

Key issue & request:

• Fair Competition & Market Structure: MiFID II has permitted the growth of non-transparent venue trading. To the detriment of individual investors, it has unintendedly facilitated a proliferation of Systematic Internalisers (SIs) with reduced transparency obligations. Securing the right market structure for European public capital markets which protects price formation will better serve companies and investors. A well-functioning price formation process is key to the stability and resilience of public capital markets and has a positive impact on the cost of capital for the broader economy.
• Guaranteeing a transparent, high quality, reliable and consistent view of 100% of the market activity, including SI and OTC trades, is key to the functioning of European capital markets and for any consolidated tape (CT) to be considered meaningful. In this respect, a broader implementation of the Market Model Typology (MMT), which currently ensures consistency of exchange data, would contribute to addressing existing SI and OTC data quality issues.
• End investors need to be empowered by ensuring execution quality across all trading opportunities.

NovitasFTCL Adds Bruce McIntyre As A Senior Partner To Meet Growing Demands From Clients Across The FinTech Sector And Continue Building Its Pan-European FinTech Presence

Date 15/02/2021

NovitasFTCL, the FinTech-focussed M&A and capital raising corporate finance adviser, is pleased to announce that Bruce McIntyre has joined as a Senior Partner.  Based in London, Bruce further extends NovitasFTCL’s industry knowledge, longstanding industry contacts and ability to execute complex and cross-border transactions in the European FinTech industry. In particular, he has a wealth of knowledge and contacts in the payments, RegTech, lending technology, financial support services and InsurTech verticals.

IOSCO Reviews The Impact Of COVID-19 Government Support Measures On Credit Ratings

Date 15/02/2021

The Board of the International Organization of Securities Commissions (IOSCO) today published a report analyzing the observed impact of COVID-19-related government support measures (GSM) on the credit ratings of the three largest credit rating agencies - Fitch, Moody´s and Standard & Poor´s (collectively the “CRAs”).

FESE Position On MiFIR Non-Discriminatory Access For ETDs

Date 15/02/2021

Key issue & request:

• The “Non-discriminatory” Access provisions under MiFIR constitute a serious risk to the EU financial stability and competitiveness as they undermine the ability of market infrastructures to ensure transparent and orderly trading, liquidity and clearing when applied to Exchange-Traded Derivatives (ETDs).
• We very much welcomed ESMA’s no action letter (here) and the delay of the entry into force of the MiFIR provisions by an additional year, until 4th July 2021, in respect of ETDs. This was included as part of the finalisation of the CCP Recovery and Resolution dossier in order to preserve financial stability in the Union. 
• This temporary relief, however, will soon elapse and will not solve the inherent Level 1 risks that the provisions will create, if applied in July 2021.

FESE: Efficient Public Capital Markets And Their Core Role In Driving European Economic Growth And Investment

Date 15/02/2021

The economic fallout from the COVID-19 pandemic, aligned with high levels of public debt and a continuing over-dependence on the banking sector, underlines the importance of developing a more strategic approach towards the development of European public capital markets, to drive the recovery as well as sustainable, economic growth in the EU.

Euronext Statement On Governance Evolution

Date 15/02/2021

Euronext today confirms that Piero Novelli has been nominated by the Supervisory Board as an independent member of the Supervisory Board, to become the next Chairman of Euronext N.V. Mr. Novelli will step down from all executive positions before becoming Chairman. The appointment of Mr. Novelli remains subject to the approval of the relevant regulatory authorities and of Euronext shareholders.

ETFGI Reports Assets Invested In ETFs And ETPs Listed In Europe Reach A Record US$1.30 Trillion At The End Of January 2021

Date 15/02/2021

ETFGI, a leading independent research and consultancy firm covering trends in the global ETFs and ETPs ecosystem, reports assets invested in ETFs and ETPs listed in Europe reach a record US$1.30 trillion at the end of January.  A strong start to the year with record net inflows of US$20.51 billion during January, which is significantly more than the net inflows of US$15.16 billion in January 2020.  Assets invested in the European ETFs/ETPs industry have increased by 1.1%, from US$1.28 trillion at the end of December, to US$1.30 trillion, according to ETFGI's January 2021 European ETFs and ETPs industry landscape insights report, the monthly report which is part of an annual paid-for research subscription service. (All dollar values in USD unless otherwise noted.)

Previse Bolsters Team In Response To Increased Demand For InstantPay Technology

Date 15/02/2021

Previse, the AI fintech that gets suppliers paid instantly, has made two new hires to its London team.

FESE: Position On MiFIR Non-Discriminatory Access For ETDs

Date 15/02/2021

Key issue & request:

• The “Non-discriminatory” Access provisions under MiFIR constitute a serious risk to the EU financial stability and competitiveness as they undermine the ability of market infrastructures to ensure transparent and orderly trading, liquidity and clearing when applied to Exchange-Traded Derivatives (ETDs).
• We very much welcomed ESMA’s no action letter (here) and the delay of the entry into force of the MiFIR provisions by an additional year, until 4th July 2021, in respect of ETDs. This was included as part of the finalisation of the CCP Recovery and Resolution dossier in order to preserve financial stability in the Union. 
• This temporary relief, however, will soon elapse and will not solve the inherent Level 1 risks that the provisions will create, if applied in July 2021.

The World Federation Of Exchanges Welcomes EU’s Principles-Based Approach To Digital Resilience

Date 15/02/2021

The World Federation of Exchanges (WFE), the global industry group for exchanges and CCPs, has responded to the EU’s proposals for a Digital Operational Resilience Act (DORA) for Financial Sectors.