European Commission

Quite rightly, there are veritable storms in capital markets conferences and the press about what needs to be done to prepare for MiFID II, due to take effect in 4+ months. There seems to be little chance for a further stay of execution, but then, with remarkable irony, MiFID I hit securities trading in November 2007 as the Global Financial Crisis was deepening, leading to the most massive destruction of capital in decades, and so undermining large swathes of the world economy. Regulators cannot time such matters, and the preparation of reforms based on broad public consultations and multiple drafts takes years. Still, we are where we are: perhaps some sort of progressive implementation would be sensible. If the authorities are certain of the value of their objectives, then surely it would be worth demonstrating some flexibility.

New European capital rules are set to be postponed amid ongoing talks between the EU and SEC.

On 17 May, OCC, the US clearinghouse that is the largest equity derivatives clearinghouse in the world, was placed on CreditWatch with negative implications by the ratings agency, S&P.

The idea of trade reporting was central to the 2009 G20 financial reform response to the global crises that swept through international markets. The idea was a simple one; get all trading counterparties to report their transactions and then global regulators would have previously impossible transparency into global financial activities. As with many things, however, theory and practice and have been far removed from one another.

Thomas Murray Data Services recently met with the European Commission market infrastructure division in Brussels. Here is a summary of the main talking points arising from our meeting:

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