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Securities trading and post-trading


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)

Public and private
sector views

Public authority views

N. Aufauvre - Banque de France - Adding predictability to resiliency: the post-Covid challenges of margining - April 2021

N. Cazenave - Autorité des Marchés Financiers (AMF) - It’s time for a post trade data tape - April 2021

K. Löber - European Securities and Markets Authority (ESMA) - The priorities of ESMA’s CCP Supervisory Committee - April 2021

J. Metzger - Deutsche Bundesbank - All for one and one for all - April 2021

J. Metzger - Deutsche Bundesbank - How to steer the DLT pilot regime? Navigating between potential and challenges - April 2021

H. Rosalino - Banco de Portugal - Are the actions being taken enough to support the CMU and to strengthen the international role of the euro? - April 2021

V. Ross - European Securities and Markets Authority (ESMA) - Increasing CMU’s transparency and fairness – Insights on the ESAP and the EU CT - April 2021

H. van Beusekom - Dutch Authority for the Financial Markets (AFM) - Towards a transparent Capital Markets Union - April 2021

U. Bassi - European Commission - Improving EU securities market transparency and infrastructure in CMU context - September 2020

G. Everts - Dutch Authority for the Financial Markets (AFM) - Equity and non-equity transparency: the final pieces of the puzzle - September 2020

M. Ferber - European Parliament - A robust market infrastructure for a successful CMU - September 2020

V. Ross - ESMA - Less complexity, more transparency - April 2020

A. Staničić - Croatian FSA - Taking the long view in the equity market transparency debate - April 2020

Industry views

N. Bean - Bloomberg - A principled compromise, not compromised principles, can deliver a CTP - April 2021

F. Bejar - Iberclear (BME) - EU securities post-trading priorities - April 2021

S. Berger - Citadel - Consolidated tapes for equities, bonds and OTC derivatives are key to enhancing the efficiency, competitiveness and resiliency of EU capital markets - April 2021

H. Boucheta - BNP Paribas Securities Services - EU and third-country CCPs: the risk of fragmentation? - 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. Maguire - London Stock Exchange Group (LSEG) - The need for a diversified clearing ecosystem - April 2021

D. Mayston - BlackRock - Now is the time to deliver the European consolidated tape - April 2021

N. Rivard - Euronext - An end-of-day execution analysis file – an effective solution to the identified use-cases - April 2021

S. Werner - State Street Bank and Trust - The DLT pilot regime – a path to Europe’s ‘next-gen’ market infrastructures? - April 2021

N. Bean - Bloomberg - A ‘cut & paste’ equity CT solution for FI markets may be no solution at all - September 2020

S. Berger - Citadel - Course corrections to illuminate the EU bond and OTC derivative markets - September 2020

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