FIA European Principal Traders Association
FIA European Principal Traders Association (FIA EPTA) represents Europe’s leading Principal Trading Firms. Our 30 members are independent market makers and providers of liquidity and risk transfer for exchanges and end-investors across Europe. We work constructively with policymakers, regulators and other market stakeholders to ensure efficient, resilient, high-quality financial markets.Learn more about EPTA
Response by FIA EPTA to the EBA consultation on Draft Regulatory Technical Standards on the reclassification of investment firms as credit institutions in accordance with Article 8a (6)(b) of Directive 2013/36/EU
FIA EPTA welcomes the opportunity to respond to the EBA’s consultation paper (the Consultation Paper) on proposed revised Regulatory Technical Standards relating to the reclassification of investment firms as credit institutions in accordance with Article 8a(6)(b) of Directive 2013/36/EU (the Reclassification RTS). FIA EPTA has consistently welcomed the new prudential regime for investment firms contained in the Investment Firm Regulation and Directive (IFR/IFD), which is aimed at creating a tailored and proportionate prudential framework for firms such as those we represent.CONTINUE READING
FIA EPTA Response to the Bank of England Consultation on the Derivatives clearing obligation
FIA EPTA welcomes the opportunity to respond to the Bank of England on its proposal to amend the derivatives clearing obligation to reflect interest rate benchmark reform. FIA EPTA has consistently supported the G20 reforms to the OTC derivatives markets, which have made these markets more open, competitive, and transparentCONTINUE READING
FIA EPTA response to UK Government (BEIS) consultation on “Restoring trust in audit and corporate governance.”
FIA EPTA members are supportive of measures to enhance transparency, corporate governance, and good market conduct and are generally supportive of many provisions in the Consultation. However, we note below the areas where we have concerns and believe further work and public consultation would be needed in order for the UK to develop an appropriate, proportionate regime that supports good corporate governance, the reputation of the UK as a good place to do business, and the competitiveness of the UK economyCONTINUE READING
FIA EPTA response to FCA CP21/09 on Changes to UK MIFID’s conduct and organisational requirements
FIA EPTA welcomes the opportunity to respond to the FCA’s consultation on changes to UK MIFID’s conduct and organisational requirements with a particular view on best execution reports.CONTINUE READING
We agree with the FCA assessments that, in their current form, RTS 27 (quarterly reports) and RTS 28 (annual reports) have not achieved their policy goal of enhancing investor protection or improving information on execution quality and order routing.
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.CONTINUE READING
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.CONTINUE READING
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.CONTINUE READING
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.CONTINUE READING
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.CONTINUE READING
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.CONTINUE READING