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Niki , why is the Mifir Review so important to the future of EU Capital markets ? The EU is currently grappling with how to make its capital markets more attractive to international investors - particularly given the more principles-based approach being taken by the UK in the post- Brexit environment - as it tries to reverse a period of declining trading activity vis-à-vis other developed markets . A considered approach to reworking Mifir – which puts the needs of end investors first – is an opportunity to solve many of these problems and should not be missed .
There are various reasons why EU capital markets increasingly lag those in the rest of the world . Much of its market infrastructure is fragmented along national lines and inefficient ( particularly in the post-trade space ), market data is expensive for investors to source , and Europe is simply failing to attract retail participation in the same way as other regions .
To rectify this , regulators should make European market data more accessible and promote user choice through an open , competitive and pan-European market structure . The Mifir Review touches on all of these issues , including the potential emergence of a consolidated tape ( CT ) across asset classes , and potential changes to the transparency framework in equity market structure .
Nick , how have negotiations developed on the equities consolidated tape ? The European Commission ’ s initial Mifir proposal signalled a major step forward for the realisation of a long-awaited
MiFIR Review :
Current state of negotiations and the importance of getting it right
As EU policymakers continue their negotiations on the Mifir review , The TRADE speaks with Nick Dutton , chief regulatory officer at Cboe Europe , and Niki Beattie , chief executive of Market Structure Partners , to reflect on some of the key topics and overall importance of the process to the EU .
equities CT by requiring the mandatory contribution of data by venues and APAs .
Cboe is supportive of a realtime CT including pre-trade quotes , believing that it is an essential part of a modern markets framework , and that its introduction will help drive long term growth of trading activity as well as enhancing market resilience . But despite a series of overly generous concessions that the EC offered to win their support ( including a multi-year delay to the inclusion of pre-trade quotes ), most other exchanges
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