MEPs will vote on the
European Parliament’s version of MiFID II on 26 October, with broad support
expected on key issues including broker crossing networks and high-frequency
The plenary vote requires all
MEPs to vote on the version of MiFID II agreed on by the European Parliament’s
Economic and Monetary Affairs Committee (ECON).
policy advisor to Olle Schmidt MEP, a member of the Alliance for Liberals and
Democrats in Europe, told theTRADEnews.com final amendments made last
week would ensure widespread support among MEPs on MiFID II.
“I expect there will be a huge
majority in the Parliament for MiFID II with these additional changes,” Ydrenäs told theTRADEnews.com.
ECON’s version of MiFID II
included a restructuring of a new trading venue category known as the organised
trading facility (OTF). The European Commission had proposed using the OTF category
to capture broker crossing networks – which were not formally recognised under the first version of MiFID – but ECON decided it would only be suitable for
OTC derivatives that will be traded on exchange-like platforms under separate
swaps reforms. ECON’s draft also included a ban on maker-taker pricing models
and a requirement for all orders to have a minimum resting period of 500
milliseconds before they can be cancelled, as a way of curbing HFT activity.
now turn to the Council of the European Union, which will propose its
own version of the directive before reconciling it with Parliament’s
version, a process which will be overseen by the European Commission. While the
Council has held meetings on MiFID II this month, and has already proposed its own OTF solution, further clarity on when its
version will be finalised is yet to emerge.
“I expect that our vote next
Friday in Strasbourg will put some pressure on the Council but I don’t know
when they will be ready to enter the into discussion with Parliament and the
Council,” said Ydrenäs.