CM18: There will be no third MiFID anytime soon
12 October 2018 Amsterdam
Image: Shutterstock
There will be no third Markets in Financial Instruments Directive (MiFID) anytime soon, affirmed a representative of the European Fund and Asset Management Association (EFAMA) at this year's鈥� Annual Collateral Management Forum in Amsterdam.
The representative stated it was 鈥渁 guess [he was] happy to take鈥�, in a panel discussing post-trade service activities related to the settlement of transactions.
He said that under MiFID II it can be difficult to collect the right level of liquidity across different venues.
He added "this was pretty much the same as in 2014" when MiFID II was in the process of being implemented.
He also suggested there "needs to be practical balances" in how the industry reach the right levels of liquidity to match the ruling of MiFID II.
"Identifiers need to be clearer", he stated, and added: 鈥淗ow can you be sure you鈥檙e trading with the right person all the time? For example, if you don鈥檛 have legal entity identifiers you will be fined, this is extremely costly.鈥�
He also affirmed, looking forward to future and pending regulations, that the 网爆吃瓜 Financing Transactions Regulation and the Central 网爆吃瓜 Depositories Regulation, in particular, should not be underestimated.
In the conclusion of the discussion, the moderator asked the EFAMA representative, if he thought there was currently too much or too little regulation within collateral management at the moment.
To this, he answered: 鈥淣ot all the text that is published by European 网爆吃瓜 and Markets Authority (ESMA) and discrepancies within ESMA ruling are clear in their intended impacts for both the buy-side and sell-side.鈥�
鈥淎 person in charge of a big sell-side firm contacted me recently, he read ESMA鈥檚 publishings and could not clearly see the intended impact for the buy-side. He told me: 鈥業'm not able to price or calculate the impact.鈥欌��
The EFAMA representative added that 鈥渇rom a pure mathematical aspect, the differences are not always easy to access, nor easily tracked.鈥�
He concluded that, in addition, 鈥渢he question of equivalence is now more important than ever.鈥�
The representative stated it was 鈥渁 guess [he was] happy to take鈥�, in a panel discussing post-trade service activities related to the settlement of transactions.
He said that under MiFID II it can be difficult to collect the right level of liquidity across different venues.
He added "this was pretty much the same as in 2014" when MiFID II was in the process of being implemented.
He also suggested there "needs to be practical balances" in how the industry reach the right levels of liquidity to match the ruling of MiFID II.
"Identifiers need to be clearer", he stated, and added: 鈥淗ow can you be sure you鈥檙e trading with the right person all the time? For example, if you don鈥檛 have legal entity identifiers you will be fined, this is extremely costly.鈥�
He also affirmed, looking forward to future and pending regulations, that the 网爆吃瓜 Financing Transactions Regulation and the Central 网爆吃瓜 Depositories Regulation, in particular, should not be underestimated.
In the conclusion of the discussion, the moderator asked the EFAMA representative, if he thought there was currently too much or too little regulation within collateral management at the moment.
To this, he answered: 鈥淣ot all the text that is published by European 网爆吃瓜 and Markets Authority (ESMA) and discrepancies within ESMA ruling are clear in their intended impacts for both the buy-side and sell-side.鈥�
鈥淎 person in charge of a big sell-side firm contacted me recently, he read ESMA鈥檚 publishings and could not clearly see the intended impact for the buy-side. He told me: 鈥業'm not able to price or calculate the impact.鈥欌��
The EFAMA representative added that 鈥渇rom a pure mathematical aspect, the differences are not always easy to access, nor easily tracked.鈥�
He concluded that, in addition, 鈥渢he question of equivalence is now more important than ever.鈥�
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