MiFID review
Short selling
MiFID review

MiFID review

The European Commission’s review of the Markets in Financial Instruments Directive (MiFID) is one of the most important regulatory initiatives that is likely to affect the cross border securities markets.

The Commission published a consultation paper on its review of MiFID in December 2010, to which ICMA has responded on behalf of its members.

2 February 2011
ICMA’s response the Commission’s MIFID Review Consultation

10 March 2011
ICMA and a number of other associations wrote to Commissioner Barnier, expressing support for the principle of broadening investors’ choice. The signatories believe that preserving investors’ freedom to choose where to execute trades is entirely compatible with the goals of ensuring transparency, strong risk management and operational efficiency.



MiFID

The Markets in Financial Instruments Directive (2004/39/EC) (‘MiFID’) is the successor to the Investment Services Directive. The objective of MiFID is to make it easier for investment firms to undertake investment business across the EU, whether on a cross-border basis or through branches. MiFID was implemented on 1 November 2007.

MiFID Connect

MIFID Connect is a joint project involving 11 trade associations including ICMA which is designed to support member firms and simplify the UK implementation of the Markets in Financial Instruments Directive (MiFID).

Click here to go to the MiFID Connect website.

FSA letters on waivers

8 March 2007
Managing waivers in the transition to NEWCOB’


8 March 2007
Waivers letter enclosure re NEWCOB



Related documents:


CESR and national regulators (including the FSA and the AMF) have been consulting the financial services industry about aspects of the implementation of MiFID. Jointly with other associations, ICMA has been involved in preparing the following responses, which can be accessed below.


December 2019
MiFID II/R and the bond markets: the second year - An analysis of the impacts of MiFID II/R implementation in 2019, its challenges and potential solutions

October 2019
A cash bond consolidated tape in Europe By Elizabeth Callaghan (From the ICMA Quarterly Report Fourth Quarter dated 10 October 2019).

September 2019
ICMA response to ESMA's MiFID II/MiFIR review report on the development in prices for pre- and post-trade data and on the consolidated tape for equity instruments - 5 September 2019

August 2019
ICMA Briefing note - ESMA publication of data for the systematic internaliser calculations for bonds (January – June 2019)
ICMA Briefing note – ESMA liquidity assessment for bonds for Q2-2019 under MiFID II/R & completeness indicators

March 2019
ICMA response to German Federal Ministry of Finance MiFIDII/MiFIR consultation - 15 March 2019

February 2019
ICMA briefing note on ESMA statement on the use of UK data in ESMA databases and performance of MiFID II calculations in case of a no-deal Brexit

January 2019
ICMA Briefing note - ESMA Q&A updates on MiFID II and MiFIR transparency topics (4 January 2019) - January 2019

December 2018
MiFID II/R and the bond markets: the first year - An analysis of the impacts and challenges of MiFID II/R implementation since January 2018

October 2018
ICMA Briefing note - ESMA liquidity assessment of bonds for Q3-2018 under MiFID II/R & ESMA completeness indicators for trading venues related to bond liquidity data – 31 October 2018
- Attachment to above briefing note
ICMA Briefing note - ESMA Q&A updates on investor protection and intermediaries (3 October), transparency and market structures topics (4 October) under MiFID II/R - October 2018

August 2018
ICMA Briefing note - ESMA liquidity assessment of bonds for Q2-2018 under MiFID II/R – August 2018
- Attachment to above briefing note
ICMA Briefing note - ESMA publication of data for the systematic internaliser calculations for bonds – 1 and 2 August 2018
ICMA Position Paper on MiFID II Trading Suspensions

July 2018
ICMA Briefing note - ESMA Q&A updates on MiFID II/R transparency and investor protection and intermediaries topics (12 July 2018)

May 2018
ICMA Briefing note - ESMA Q&A updates on MiFID II/R transparency and market structure topics (29 May 2018)
ICMA Briefing note - ESMA Q&A updates on MiFID II/R data reporting, investor protection and intermediaries topics (25 May 2018)
ICMA Overview of the ESMA Liquidity Assessment for Bonds (May-Aug 2018), including the list of liquid bonds

April 2018
ICMA Briefing note - ESMA liquidity assessments of individual bonds for MiFID II/R implementation (updated 18 April 2018)
MiFID II/R implementation in secondary markets

March 2018
ICMA Briefing note - ESMA Q&A updates on MiFID II/R market structure and transparency (28 March 2018) and investor protection topics (23 March 2018) & ESMA publication of trading venues and CCPs benefiting from a transitional exemption from the access provisions for exchange-traded derivatives under MiFIR (26 March 2018)

February 2018
ICMA Briefing note - ESMA Q&A update on transparency and market structure topics (7 February 2018)
ICMA Notes - Early Days MiFID II meeting - 1 February 2018

January 2018
A briefing note on ESMA liquidity assessments of individual bonds for MiFID II/R implementation
ESMA guidance on the implementation of MiFID II/R
MiFID II/R implementation workshops: key takeaways

December 2017
ESMA statement on LEI implementation under MiFID II
Overview of MiFID II deferral regimes in EU Member States
Liquidity assessments of individual bonds for trade reporting

November 2017

FAQs on MiFID II/R and SFTs (updated November 2017)
A briefing note on ESMA Q&A updates on MiFID II / MiFIR transparency topics (15 November 2017)
A briefing note on ESMA Q&A updates on MiFID II / MiFIR investor protection and intermediaries (10 November 2017) and ESMA Q&A updates on MiFIR data reporting (14 November 2017)
   
October 2017
MiFID II/R implementation: ESMA guidance
MiFID II/R implementation: road tests and safety nets
A briefing note on ESMA Q&A updates on MiFID II/MiFIR transparency and investor protection

September 2017
MiFID II/R FAQs on extra-territoriality

August 2017
Request for clarification from ESMA on hedging and new issues (packages)

July 2017
Practical challenges of implementing MiFID II/R in secondary markets
MiFID II/R implementation in secondary markets
A briefing note on ESMA Q&A updates on market structure, data reporting (7 July) and best execution (10 July) under MiFID II / MiFIR
A briefing note on ESMA interim transparency calculations for non-equity instruments (excluding bonds) under MiFID II
Summary note of the ICMA MiFID II/R Implementation Workshop, London, 4 July 2017
Presentation on Transparency, Best Execution & Emerging Market Structure Trends, Ben Pott, 4 July 2017

June 2017
A briefing note on MiFID II/R costs and charges for fixed income market-makers (bonds and repo)
A briefing note on ESMA Q&A updates on MiFID II/R transparency topics and the ESMA Opinion on 3rd country trading venues
A briefing note on the ESMA Opinion on the concept of “Traded on a trading venue” (TOTV) under MiFID II and MiFIR

May 2017
MiFID II/R Post-trade transparency: trade reporting deferral regimes. An ICMA Position Paper

April 2017
A briefing note on ESMA Q&A on MiFID II/R investor protection (research)
A briefing note on ESMA Q&A on MiFID II/R transparency topics (post-trade reporting obligation)
A briefing note on ECMI-CEPS roundtable on MiFID II/R transparency for non-equity markets
A briefing note on ESMA Q&A on MiFID II/R Organised Trading Facilities (OTF) and Systematic Internalisers (SI)
ICMA MiFID II/R Systematic Internaliser Workshops: summary report
MiFID II/R implementation: the Systematic Internaliser regime
A briefing note on ESMA Q&A on MiFID II/R Best Execution

March 2017
A briefing note on ESMA’s final report on draft RTS for package orders

February 2017
Discussion paper on MiFID II/R Best Execution and Securities Financing Transactions
ERCC letter to the European Commission regarding the applicability of MiFID II/R best execution to SFTs

December 2016
ESMA Consultation Paper on Consolidated Tape – ICMA Submission

November 2016
ICMA ‘FAQ’ on systematic internalisers for bond markets
A briefing note on systematic internalisers for bond markets

October 2016
SFT Reporting Requirements

September 2016
MiFID II/R Fixed Income Best Execution Requirements RTS 27 & 28

April 2016
MiFID II/R Transparency and Best Execution presentation (Q2 2016)

March 2016
ICMA response to FCA CP: Markets in Financial Instruments Directive II Implementation – Consultation Paper I Q6, 8, 12 and 13
MiFID II/MiFIR – Transparency & Best Execution requirements in respect of bonds - presentation Q1 2016

15 June 2015
JAC response to ESMA Consultation Paper - Draft guidelines on complex debt instruments and structured deposits (item 40 on the ICMA retail structured products webpage)

2 March 2015
ICMA responded to an ESMA Consultation Paper on MiFID II/MiFIR

1 August 2014
ICMA responded to an ESMA Consultation Paper on MiFID II/MiFIR

1 August 2014
ICMA responded to an ESMA Discussion Paper on MiFID II/MiFIR

25 September 2013
ICMA and a broad EU financial services representation wrote to the European Parliament, the European Council and the European Commission on common principles on MiFID II. The stakeholders represented highlighted common views that they share on important issues through this letter

4 August 2010
Joint response to CESR Technical Advice to the European Commission in the context of the MiFID Review – Client Categorisation

22 December 2009
Joint response to CESR’s consultation paper “Inducements: Good and poor practices” (CESR/09-958)

5 December 2008
Joint response to FSA CP 08/16 Quarterly Consultation CH 5 Transaction Reporting Rules: Transactions on over-the-counter derivatives  

1 October 2008
The call for evidence received on 15th July


1 October 2008
ICMA response to call for evidence

21 November 2007
CESR's Public Consulation on the CESR MIFID Level 3 Expert Group Draft Work Plan for Q4/2007 - 2008

27 April 2007
Joint Associations' reponse to CESR's second consultation on Inducements under MiFID

21 March 2007
Letter from Commissioner McCreevy to ICMA on supervision of branches under MiFID

15 March 2007
Joint response on MiFID best execution

2 March 2007
Joint response to CESR on transaction reporting

23 February 2007
Joint follow-up response to FSA Consultation papers 06/19 and 06/20

9 February 2007
Joint response to CESR's consultation on inducements under MiFID (06-687)

9 February 2007
Joint response to CESR's consultation on the passport under MiFID (06-669)

15 January 2007
Joint Response to CESR CP Data Standards

18 December 2006
Response to CESR consultation on publication and consolidation of MiFID market transparency

28 November 2006
Joint Associations' initial response to the FSA’s Consultation Paper on Reforming Conduct of Business Regulation (CP06/19)

27 November 2006
Joint Associations' response to CESR on minimum records

31 October 2006
Joint Associations' response to FSA's CP06/14

31 October 2006
Joint Associations' response to AMF's consultation on best execution

26 September 2006
MIFID Client Classification Response

12 September 2006
Response sent to CESR on Consultation on MIFID Level 3 work

14 July 2006
ICMA, ISDA and TBMA joint response to FSA Discussion Paper 'Implementing MiFID's Best Execution Requirements'

Appendix to Annex B

 

Short selling

There has been increasing regulatory attention to short selling since the collapse of Lehman Brothers.

10 March 2012
AFME, ICMA, ISLA and ISDA joint input for ESMA Consultation Paper on possible Delegated Acts concerning the regulation on short selling and certain aspects of credit default swaps ((EU) No XX/2012)

13 February 2012
AFME, ICMA, ISLA and ISDA joint input for ESMA Consultation Paper on draft technical standards on the Regulation (EU) xxxx/2012 of the European Parliament and of the Council on short selling and certain aspects of credit default swaps
 
13 January 2011
On 18 May 2010, Germany announced a ban on short-selling transactions in certain shares, naked short selling transactions in debt securities issued by EU Member States whose legal currency is the euro as well as Credit Default Swaps (CDS) to the extent that at least one reference liability is a liability of a euro zone country and to the extent that they do not serve as hedging instruments against credit default risks (naked CDS).  This ban was subsequently revoked with effect from 27 July 2010 due to the entering into force of the Act on the Prevention of Improper Securities and Derivatives Transactions (Gesetz zur Vorbeugung gegen missbräuchliche Wertpapier- und Derivategeschäfte) on 27 July 2010 which contains prohibitory regulations in this regard. Therefore, the General Decrees no longer need to be upheld.  However, the FAQs that the Bafin published pursuant to the ban that came into effect on 18 May 2010 are still in effect and can be accessed here.

The European Commission has also been considering short selling.  In June, the European Commission published a consultation paper to which ICMA submitted two responses:

(1) Secondary Markets response
(2) ERC response 1*

The European Commission subsequently published a draft Short Selling Regulation and Regulatory Impact Assessment in September.  This draft is currently being considered by the European Parliament and Council.

In this context, the ICMA European Repo Council wrote to Mr. Pascal Canfin, MEP on 13 January 2011 to outline the concerns with the way Article 13 of the proposed Regulation was drafted.  Article 13 of the proposed Regulation requires provisions be put in place for the automatic buy-in of securities and imposition of daily payments in the case of failure to deliver securities within the prescribed time period.

   1See also European repo market white paper on short-selling and settlement failures page for further updates.

*On 4 December 2015, the name of the European Repo Council (ERC) was changed to the European Repo and Collateral Council (ERCC).
    

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