In its latest report the securities regulator warns against high market and liquidity risks, including the “acute” possibility of significant market corrections and possible repricing in the equities space.
The action will allow ESMA and national competent authorities to assess the application by firms of the MiFID II requirements on costs and charges.
Latest liquidity landscape report from Liquidnet found that 74% of volumes in STO stocks took place on EMEA-based venues in January.
The regulator warns that there could be a potential mismatch between asset liquidity and redemption timeframe.
Regulator to consult on technology provider, request-for-quote system and pre-arranged transaction system use cases that challenge the trading venue regulatory perimeter.
The final guidelines follow a public consultation with participants and aim to enhance clarity and foster convergence in the industry’s approach to investor protection under MiFID II.
European securities regulator found that the risks associated with derecognising the Tier 2 central counterparties did not outweigh the benefits of keeping them in place.
The European Commission and ESMA have overhauled the Mifid II and Mifir regulations including moves to reduce dark volume caps to 7% and discourage volumes from SIs.
The buy-side are being urged to prepare for the introduction of the mandatory buy-in regime, despite there being potential for a two-to-three-year delay in the controversial aspect of a new regulation.
The proposed changes come as part of the benchmark transition away from EONIA and Libor and onto new alternative risk-free rates benchmarks such as €STR.