Today BETTER FINANCE sent out a Public Letter to the EU Authorities - including the European Parliament, the European Commission and the European Securities and Markets Authority (ESMA) - entitled “MiFID II rules for “Systematic Internalisers” will hurt European investors”.
Whereas in principle European Individual Investors welcome the introduction of the new Markets in Financial Instruments Directive (MiFID II), BETTER FINANCE is concerned about the shrinking share of regulated securities markets in the EU, now only representing roughly 50% of transactions, compared to 67% in the US and 88% in East Asia. Tellingly, recent research reveals that the majority of OTC trades (58%) are retail-sized trades meaning that a significant part of trades by European individual investors are now executed in these “dark” venues. This is very worrying indeed, as capital markets must remain fully open and transparent to individual investors.
Please read the full letter here.
