Recent Updates
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Response by the FIA European Principal Traders Association to the European Commission consultation on the draft Delegated Regulation specifying the conditions under which the commercial terms for clearing services for OTC derivatives are to be considered to be fair, reasonable, non-discriminatory and transparent (FRANDT)
Many of FIA EPTA’s members are clients of direct clearing members, and therefore rely on clearing members for access to financial markets. In consequence, we are supportive of the overarching objective which the Delegated Regulation on FRANDT seeks to achieve, which is to increase access to client clearing services by ensuring that clearing members provide clearing services on fair, reasonable, non-discriminatory, and transparent terms.
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FIA EPTA Response to the HM Treasury Consultation on the Implementation of the Investment Firms Prudential Regime and Basel 3 standards
The FIA European Principal Traders Association (FIA EPTA) appreciates the opportunity to respond to HM Treasury’s consultation on the Implementation of the Investment Firms Prudential Regime and Basel 3 standards. As MiFID II investment firms our members strongly support the more proportionate prudential regime contained in the Investment Firms Prudential Regime (IFPR). FIA EPTA members agree with the Government’s proposals. Specifically, in regard to the UK resolution regime, we would strongly urge the Government to exclude FCA authorised investment firms from its scope. We hope this feedback is useful and would be delighted to provide any further input as required.
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FIA EPTA response to the EBA Consultation on its Guidelines on internal governance for investment firms (EBA/CP/2020/27)
FIA EPTA appreciates the opportunity to provide feedback to the European Banking Authority (EBA) Consultation on its Guidelines on internal governance for investment firms. FIA EPTA members note that the Draft EBA Guidelines on Internal Governance are very similar to those currently in effect and applicable to CRD V and MiFID firms, with relatively few changes.
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FIA EPTA response to the EBA Consultation on Guidelines on remuneration policies for investment firms (EBA/CP/2020/26)
FIA EPTA appreciates the opportunity to provide feedback to the European Banking Authority (EBA) Consultation on its Guidelines on remuneration policies for investment firms. FIA EPTA members note that the Draft EBA Guidelines on sound remuneration policies are very similar to the Guidelines EBA/GL/2015/22 dated 21 December 2015 currently in effect and applicable to firms subject to CRD V and MiFID firms, with minimal changes.
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CMU and the Investment Firm Review: strengthening European capital markets through proportionality
Hands up if you want up-and-coming European companies to have sufficient access to the money they need to grow and to drive prosperity across the EU? It’s a no brainer – and one of the reasons why European politicians and regulators are keen to push forward the Capital Markets Union.
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Developing the CMU through an effective new Prudential Regime for Investment Firms
One of the building blocks of the EU’s Capital Markets Union project is entering a crucial few months as the proposed new Prudential Regime for Investment Firms enters parliamentary scrutiny.
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Flash Crashes – time to stop knee-jerk blaming of HFT?
On the 6th May 2010, Wall Street experienced what quickly became known as the ‘Flash Crash’. On the 15th January 2015, the Swiss Franc experienced a similar event against the Euro. And in October 2016, there was a flash crash in sterling, following Britain’s vote to leave the EU. The recent events in the sterling market seemed like a good idea to look back at the post event analysis of previous ‘flash crashes’ and review the findings.
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The growing body of HFT research: time to put old arguments to bed?
Over the last few years the great and the good of the world’s regulatory authorities that govern financial markets have studied the impacts of the electronification of the markets, and the role played by high frequency trading. We welcome the recognition in these studies that markets and end users benefit from increased use of innovative technology, in line with the experience with innovation in other industries. We provide a summary of the recent reports.
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Five years’ of providing a voice to the EU principal trading industry
This summer, FIA EPTA marked the 5th anniversary of its foundation. Although still a comparatively young organisation, this milestone has caused the people, like myself, who were there at the start to reflect upon how things have changed since we’ve been in business – as well as looking forward to what the next five years might bring.
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CRD IV bonus cap has perverse effect of increasing risk
The EU's Capital Requirements Directive CRD IV has imposed a bonus cap on credit institutions and investment firms with the intention of discouraging the excessive risk-taking with client monies that contributed to the financial crisis. However, the inappropriate application of this bonus cap to principal trading firms now has the potential to result in the perverse effect of actually increasing risk, whilst hurting market quality.
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