All equity trading platforms in Europe have to be regulated properly. We can only close the current loopholes if we apply the same rules to the same activities. FESE has written to the Internal Market Commissioner to express its concerns about the potential proposal of creating a new, lighter-regulated venue category (‘OTF') for activities that are currently covered by MiFID. This would perpetuated the unlevel playing field and lead to greater complexity and regulatory arbitrage. Instead, FESE recommends tightening up the definitions of existing venue types and clearly defining when the activity is not a platform. Hence, OTC should continue to exist but the regulatory flexibilities under the OTC label should only be used when the broker's activity does not constitute a trading platform.
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Federation Of European Securities Exchanges Letter To EU Internal Market Commissioner Barnier Regarding MiFID
Date 08/04/2011
