Securities trading and post-trading
Securities trading and post-trading
Context
The EU securities trading and post-trading policy framework has been developed over the last 15 years with a set of legislations covering trade execution, clearing and settlement (MiFID / MiFIR, EMIR, CSDR) and also other activities such as securities financing transactions. Progress has been made with the implementation of these legislations, and also with international standards such as the IOSCO PFMIs, in the efficiency and safety of EU securities markets and also their harmonisation.
Many issues are however still pending. Regarding trading, different areas are being considered in the context of the review of MiFID / MiFIR, such as transparency requirements, data provision, market structure and trading obligations, where these legislations have not achieved their objectives so far. MiFID calibrations and rules also need updating with the impacts of Brexit.
In the clearing area, EMIR has improved the mitigation of counterparty risks and has been updated to take into account the impacts of Brexit with stricter requirements for third-countries operating in the EU with systemic relevance. An EU CCP recovery and resolution regime aiming to ensure the resilience of EU CCPs and that a possible recovery or resolution can be appropriately managed has been adopted. As for settlement, progress has been made in terms of efficiency and risk mitigation thanks to the implementation of CSDR and of TARGET2-Securities. However further harmonisation is still needed at the cross-border level with many of the barriers identified 20 years ago in the Giovannini report still in place, particularly the legal ones. A review of CSDR is programmed for 2021. Another question is whether the fragmentation of post-trading market infrastructures can be reduced. Finally technologies such as DLT could have significant impacts in this area that still need materializing.
Contributions to the policy debate
Extracted from the main Eurofi publications (Regulatory Updates, Views Magazines and Conference Summaries)
Key Eurofi
documents
Eurofi policy note
Enhancing transparency in EU securities markets - April 2020
Session summaries
Clearing: remaining challenges and way forward - Ljubljana Financial Forum - September 2021
EU consolidated tape: next steps - Ljubljana Financial Forum - September 2021
EU Consolidated Tape and European Single Point of Access - Lisbon Virtual Seminar - April 2021
EU securities post-trading: priorities ahead - Lisbon Virtual Seminar - April 2021
Securities and derivatives clearing: remaining challenges - Lisbon Virtual Seminar - April 2021
How to address key CCP outstanding issues? - Berlin Financial Forum - September 2020
MiFID II state of play and remaining challenges - Helsinki Financial Forum - September 2019
Upcoming priorities for EU securities post-trading - Helsinki Financial Forum - September 2019
Public and private
sector views
Public authority views
J. Metzger - Deutsche Bundesbank - All for one and one for all - April 2021
V. Ross - ESMA - Less complexity, more transparency - April 2020
Industry views
F. Bejar - Iberclear (BME) - EU securities post-trading priorities - April 2021
N. Brab - Deutsche Börse Group - DLT is good, except when it’s not (regulated) - April 2021
A. Dockx - J.P. Morgan - Improving CSDR settlement discipline to support CMU objectives - April 2021
G. Eliet - Euroclear S.A. - Making the DLT pilot regime a success for the EU - April 2021
D. Mayston - BlackRock - Now is the time to deliver the European consolidated tape - April 2021
I. Peeters - Euroclear S.A. - Has CSDR delivered on CMU objectives? - September 2020
S. Berger - Citadel - Achieving post-trade transparency in the EU non-equity markets - April 2020