Les métiers du post-marché accélèrent leur mue

L'info AMAFI n° 165

ICSA - Annual General Meeting, Frankfurt, 20-21 May

The annual general meeting of the International Council of Securities Associations (ICSA), which brings together associations from around the world operating in the field of financial markets, was held this year in Frankfurt. The event was organised and hosted by Bwf, the association that represents German brokers. AMAFI was represented by Chief Executive Stéphanie Hubert, who was reappointed to the ICSA Board, and by Arnaud Eard, AMAFI’s Director of European and International Affairs.

The meeting took place against the backdrop of upcoming general elections in the European Union, the United Kingdom, the United States and India. Each of these elections carries significant political and economic importance. Discussions between participants revealed a sharp contrast between Europe, which is keenly aware of the need to revive its competitiveness and effect structural reforms, the United States, whose economic indicators are in robust health but which is plagued by political uncertainty, and India, which is resolutely focused on growing and progressing up the rankings of the global economy.

Participants also talked about their own priorities and the transition to T+1 settlement in several jurisdictions. Stéphanie Hubert took part in a panel discussion on this topic and stressed the need for the EU to carry out a cost-benefit analysis for such a move. Although switching to T+1 might seem inevitable, it should only be contemplated after a thorough examination of the impacts on the competitiveness, attractiveness and liquidity of European markets, which are structured very differently from other jurisdictions.

This year’s gathering was more sharply focused on European issues since it was held in Frankfurt, which is already the headquarters of the ECB and EIOPA and which is set to be the home of Europe’s new Anti-Money Laundering Authority (AMLA). Christian Lindner, Germany’s Federal Minister of Finance, gave the event’s keynote address. He insisted that to improve financing conditions for businesses, whose competitiveness is declining, a European approach is needed, since domestic measures are inadequate. He touched several times on Franco-German proposals, in particular concerning reforms to Europe’s securitisation market and supervision. On this last point, however, he suggested that encouraging convergence in practices would be preferable to extending ESMA’s powers. Minister Lindner also called for business red tape to be reduced.

The European Commission, represented by Paulina Dejmek-Hack, Director for General Affairs at DG FISMA, gave a presentation outlining several avenues for Europe’s future work programme in the areas of securitisation, supervision, pension funds, rule simplifications and sustainable finance.

European capital markets - Meetings with national authorities

As part of promoting AMAFI's report presenting the association’s recommendations aimed at encouraging deep, liquid and competitive European capital markets, Chairman Stéphane Giordano, Arnaud Eard, Director of European and International Affairs, and members of the European Action Committee met with the representatives of several authorities, including Martina Tambucci, Head of the International Relations Office at Consob (Italy), Ines Drumond, CNVM Vice-Chair (Portugal), and Rodrigo Buenaventura, CNMV Chair (Spain).

Discussions focused on securitisation, equity investment to finance EU companies, ESMA’s ability to issue no-action letters to provide the requisite flexibility to an overly rigid regulatory framework, as well as the competitive disadvantages arising from the extra-territoriality of European law on investor protection.

• On reviving the European securitisation market, although the talking partners understood the need for reforms to the prudential framework to alleviate the constraints on bank balance sheets and so increase the ability of banks to finance the European economy, they did not seem to view this as a priority area for reform.
• Conversely, promoting retail equity investment over the long term was seen as a central goal – and one whose achievement will depend heavily on tax incentives.
• Meanwhile, the authorities that AMAFI met with were divided on the question of no-action letters.
• Consob and CNVM representatives said that they supported AMAFI’s proposal that EU investor protection rules should not apply to EU participants doing business in a third country for non-EU clients.

Review of the MiFID framework

MiFID

The newly revised MiFID II is to be transposed into national law by the end of September 2025. Broadly, it amends the regulatory framework applicable to multilateral trading facilities, consolidated data requirements, the exemptions regime, which has been expanded, certain market structure provisions and best execution rules.

Specifically regarding commodities, the main amendments concern:

• Circuit breaker mechanisms, which suspend trading in the event of a sudden drop and which should include static and dynamic breakers unless it can be demonstrated that a single type of breaker is enough to manage volatility.
• The position limits regime and position management controls in commodity derivatives and derivatives on emission allowances.
• The definition of commodity derivatives trading as an ancillary activity, particularly within the framework of a group.

MiFIR Refit

The revised MiFIR came into force on 28 March 2024 as regards provisions not requiring Level 2 measures, as specified by the European Commission and ESMA.

These concern the end of pre-trade transparency for request-for-quote systems and voice systems for non-equity instruments, the end of the size-specific waiver, and pre- and post-trade transparency for listed and over-the-counter (OTC) derivatives subject to the clearing obligation. Since the regulation came into force, systematic internalisers in equity instruments have also been able to process orders at the mid-point of bid and ask prices, regardless of the size of the transaction.

However, other provisions with a significant bearing on the market need to be specified in RTS, including those dealing with transparency on equity and non-equity markets, the systematic internalisers regime, designated disclosure entities and transaction reporting.

At the end of May, ESMA published several consultations aimed at establishing some of these RTS. Within this framework, AMAFI is focusing particularly on the following topics:

• The economic conditions applicable to consolidated tape providers (CTPs).
• Obligations to make pre-trade and post-trade data available on reasonable business terms.
• The rules on post-trade transparency obligations for corporate bonds.
• Reference data on financial instruments, in particular OTC derivatives, as well as the new reporting standards.

Replay débat public : L’investissement à long terme, un enjeu pour l’avenir de l’Europe

Regardez le Replay du débat public du 12 juin, animé par le journaliste Fabrice Lundy, avec Stéphane Giordano, Président de l’AMAFI, Marc Lefèvre, Président de la Place des investisseurs et Philippe Waechter, Chef économiste d’Ostrum AM.

Nouvelles vidéos Success Story