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In publishing its final recommendations & guidelines on Market Data Consolidation, and its final recommendations on Record Keeping, today's publication puts in place CESR's first pieces of definitive Level 3 work, aimed at ensuring supervisory convergence among Members in the day to day implementation of Directive 2004/39/CE (MiFID).
- CESR's Level 3 Guidelines and recommendations on Publication and Consolidation of
Market Data
Following an initial call for evidence and a public consultation, CESR publishes guidelines and recommendations (Ref. CESR/07-043) to facilitate the understanding of certain requirements of the MiFID, and its Implementing Regulation on publication and consolidation of market information. These measures are intended to facilitate a consistent implementation of the provisions concerned, without imposing further obligations on investment firms, MTFs or regulated markets. This is accompanied by a feedback statement (Ref. CESR/07-086).
- CESR's Level 3 Recommendations on the List of minimum records under Article 51(3) of the
MiFID Implementing Directive:
Following a consultation of all market participants, CESR is also issuing today a final recommendation to its Members which sets out the content of the list of minimum records that competent authorities need to draw up in accordance with Article 51(3) of the MiFID Level 2 Implementing Directive (Ref. CESR/06-552c). This is accompanied by a feedback statement (Ref. CESR/07-085) which provides a summary of the main comments received by CESR along with some explanations on CESR’s final approach to some of the most significant issues raised in the consultation.
CESR is of the opinion that both investors and industry stand to benefit from a common approach to the list.
The guidelines and recommendations address several practical issues on how regulated markets, MTFs and investment firms act when publishing transparency information required under MiFID. In particular, requirements related to timing of publication, process for monitoring the data quality as well as the use of a website as a publication channel. Another focus is on the consolidation of the information. Under the MIFID, consolidation of this information will be undertaken by market forces. In order to enhance that process CESR is issuing recommendations on how to facilitate the consolidation process including recommending the use of certain international standard.
The purpose of these guidelines and recommendations is to help investment firms, MTFs and regulated markets to assess the way in which these provisions are interpreted by competent authorities. They should also be understood as a ‘safe harbour’ to ensure that investment firms, MTFs and regulated markets fulfil their respective obligations when following the proposed guidelines and recommendations.
As such, both the guidelines and recommendations issued today are designed to ensure that the implementation and application of the Level 1 Directive and the Implementing Regulation, is - 2 - consistent across the EU. And, indeed, that these processes to ensure consistent application across Europe will have incorporated the views of market participants following CESR consultation process, which was undertaken prior to this consultation.
