AFME lists key considerations to take on board around the establishment of a UK consolidated tape as the FCA’s consultation period, set out in July, closes on Friday.
Europe and Asia Pacific firms are honing their focus in recent months amid mounting pressure surrounding the shift to T+1 in North America.
AFME chief says inclusion of sufficient pre-trade information has been lost in negotiations and could lead to suboptimal outcomes.
AFME, EFAMA and BVI have urged co-legislators to take an evidence-based, addressing industry concerns appropriately, even if this results in a longer time to complete the negotiations.
The MoU, however, will not make any decisions around the adoption of equivalence or deal with access of UK-based firms to the single market or EU firms’ access to the UK market.
AFME’s latest equity primary markets and trading report found that average daily equity turnover declined by €15 billion YoY, while also noting declines in block trading and double volume cap instrument suspensions.
With the US confirming its shift to T+1 settlement in 2024, Wesley Bray looks at the impact this will have globally, whether or not the UK and EU should follow suit and how trading desks will be impacted by the move.
The Association recommended that volume caps should be removed or, alternatively, suspended for a five-year period, after which ESMA should assess whether the cap is negatively impacting price formation.
Industry association warns regulators that the ongoing Mifir Review could risk holding back EU equity markets; is calling for a diverse range of trading mechanisms in Europe.
The latest Equity Primary Markets and Trading Report from AFME also shows that equity underwriting on European exchanges declined 61% in 2022 – although average daily equity trading is up 9%.