FIA EPTA members strongly support the transparency objectives targeted by MiFID II/MiFIR and welcome the opportunity to respond to the ESMA consultation on its review report on the transparency regime for non-equity instruments and the trading obligations for derivatives.
FIA EPTA members observe that there remain serious market structure deficiencies in the non-equity market in Europe. The root cause of these problems relate to persistent shortcomings in the pre- and post-trade transparency regime, with the inconsistent and liberal use of post-trade deferrals for non-equities effectively denying the market meaningful post-trade transparency. As ESMA points out, 85% of bond trades in Europe result in a trade reporting deferral, with full transaction details often absent when eventually published.Please see the full FIA EPTA response attached.
