Market Structure
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FIA EPTA’s Sandra Burggraf appointed to EBA Banking Stakeholder Group
FIA European Principal Traders Association is pleased to announce that Sandra Burggraf, Senior Policy Advisor – Prudential Regulation & Risk, has been appointed to the European Banking Authority’s Banking Stakeholder Group (EBA BSG).
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FIA EPTA Response to the IOSCO consultation report - Evolution in the Operation, Governance and Business Models of Exchanges: Regulatory Implications and Good Practices
The trend towards the de-mutualization of exchanges that began in the early 2000s has resulted in the most significant European exchanges being for-profit organisations. There has also been substantial consolidation amongst exchanges in Europe arising from acquisitions by other exchanges. Furthermore, there have been acquisitions by exchanges of entities not involved or only peripherally involved in exchange-type activities resulting in a significant dilution of the importance of revenues arising from execution fees to the overall revenues of the groups operating these exchanges.
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FIA EPTA responds to FCA proposal on publicising enforcement investigations
FIA EPTA has responded to the UK Financial Conduct Authority’s public consultation on changes to its approach to enforcement investigations. The proposed changes include the FCA publicly announcing the opening of an investigation and disclosing the identity of the subject of the investigation where it considers this to be in the public interest. While the associations support the FCA’s commitment to making its activities more transparent, they are concerned that the proposed approach will be detrimental to the orderly functioning of UK capital markets with limited value to public interest.
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New paper identifies unreported segment of liquidity in European equity markets
A new paper published by FIA European Principal Traders Association identifies an entire segment of equity activity in both EU and UK markets that is currently unreported. Consequently, European share trading volumes are perceived by the market, including global investors and issuers, as being significantly lower than they actually are.
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FIA EPTA response to the FCA Consultation on Improving transparency for bond and derivatives markets (FCA CP 23/32)
FIA EPTA welcomes the FCA’s proposals on improving bonds and derivatives transparency. Our members are very supportive of both the ambition and simplicity shown regarding both pre-trade and post-trade transparency. A less complex regime will be easier for firms and trading venues to comply with and administer and above all will make UK capital markets more attractive. The inclusion of sovereign bonds in this ambitious framework is a particularly innovative step and will support the growth and competitiveness of UK capital markets with tangible benefits to the real economy.
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FIA EPTA Public Comment on IOSCO’s Consultation Report on Market Outages
FIA EPTA members welcome the opportunity to respond to IOSCO’s consultation on market outages and are supportive of the work being done on this topic, particularly efforts to require trading venues to publish clear comprehensive outages plans on an ex-ante basis. Market resilience is at the core of efficient and competitive financial markets and it is imperative that trading venues clearly outline a well-planned approach to communication and management in the event of a market outage to provide certainty to market participants.
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FIA EPTA Response to ESMA’s Consultation Paper on Technical Advice on the CSDR Penalty Mechanism
FIA EPTA members are supportive of effective measures to improve settlement discipline and efficiency in Europe, particularly in light of discussions concerning shortening settlement cycles. However, we urge ESMA to further consider their proposals put forward in the Consultation Paper on Technical Advice on the CSDR Penalty Mechanism, particularly regarding application of progressive penalty rates.
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FIA EPTA response to FCA CP23/27 on reforming the commodity derivatives regulatory framework
FIA EPTA’s members support the FCA’s objectives of promoting market integrity and resilience and preventing disorderly trading and settlement in the commodity markets and our members generally welcome the proposals included in the consultation. We restrict our comments, therefore, to a limited number of issues, as set out in our response.
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New paper highlights the role of liquidity providers in efficient markets
Analysis of market data from a day when a partial outage prevented liquidity providers from accessing a major pan-European exchange has revealed that their absence materially decreased volumes and increased the cost of trading.
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FIA EPTA response to the ESMA Call for Evidence on shortening the settlement cycle
FIA EPTA supports the position set out by the European T+1 Industry Taskforce in their High-Level Remarks. As independent market makers, we highlight the fundamental impact any move to so-called “atomic settlement” would have on our members’ existing business models which involves continuous market making and liquidity provision.
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