2014-04-16 11:47:35

FESE Press Release

Press Release Brussels,
15th April 2014


FESE welcomes European Parliament's vote on MiFID II

Today, the European Parliament in plenary adopted the Commission's proposal of the review of the Markets in Financial Instruments Directive (MiFID II). The Federation of European Securities Exchanges (FESE) welcomes the agreement of European policy makers on MiFID II Level 1 text. This directive, which was initially adopted in 2004, changed Europe's trading landscape by increasing the competition between equities trading venues, but also led to increased market fragmentation and complexity for investors and companies.

Christian Katz, President of FESE, said: "I welcome today's plenary vote by the European Parliament on this important directive's review which has managed to find a balanced agreement that will help bolster investor confidence in our markets. As FESE, we will cooperate with issuers and market participants alike to implement the envisaged market improvements".

FESE highlights the importance of the following positive achievements, which should bring more efficient, resilient and transparent financial markets in Europe:

  • Stronger investor protection through a more robust, transparent and efficient market structure.
  • A framework for the implementation of the G20 trading mandate in respect of derivatives.
  • A strengthened transparency regime for equities that is flexible enough to protect investors from market impact.
  • An adequate framework for technological innovations in the field of high-frequency trading.
  • An increased ability for SMEs to raise capital in the EU through a specific SME markets' label.

At the same time, FESE strongly welcomed the European Commission's ambition to extend appropriate and calibrated transparency to bonds and derivatives. FESE will continue to support all initiatives to ensure these ambitions are realised at the next level of rule definition, either within Level 2 or beyond.

Judith Hardt, Director General of FESE, said: "I would like to congratulate the European co-legislators for their excellent work and the determination they have demonstrated in dealing with equities market structure and the fragmented liquidity flow. We urge ESMA to live up to the Level 1 ambition with regard to the implementation of the trading mandates and the establishment of an appropriately calibrated transparency regime for all asset classes. We look forward to continuing our engagement with regulators and all stakeholders at Level 2".

About FESE

The Federation of European Securities Exchanges (FESE) represents 41 exchanges in equities, bonds, derivatives and commodities through 21 full members from 30 countries, as well as 2 Observer Members. FESE is a keen defender of the Internal Market and many of its members have become multi-jurisdictional exchanges, providing market access across multiple investor communities. FESE represents public Regulated Markets. Regulated Markets provide both institutional and retail investors with transparent and neutral price-formation. Securities admitted to trading on our markets have to comply with stringent initial and ongoing disclosure requirements and accounting and auditing standards imposed by EU laws.

At the end of 2013, FESE members had up to 8,950 companies listed on their markets, of which 8% are foreign companies contributing towards the European integration and providing broad and liquid access to Europe's capital markets. Many of our members also organise specialised markets that allow small and medium sized companies across Europe to access the capital markets; 1,478 companies were listed in these specialised markets/segments in equity, increasing choice for investors and issuers.

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