EUU, Alm.del - 2019-20 - Bilag 653: Notat og høringssvar vedr. EU-Kommissionens offentlige høring om MiFID II/MiFIR

Europaudvalget 2019-20
EUU Alm.del Bilag 653
Offentligt

MINISTER FOR INDUSTRY,

Valdis Dombrovskis

Executive Vice-President for An Economy that Works for People and

Commissioner for Financial Services, Financial Stability and Capital

Markets Union

European Commission

BUSINESS AND FINANCIAL

AFFAIRS

MINISTRY OF INDUSTRY,

Dear Executive Vice-President Valdis Dombrovskis

The Danish government welcomes the opportunity to respond to the Euro-

pean Commission’s consultation regarding the review of the MiFID

II/MiFIR regulatory framework.

Generally, it is important to maintain and increase confidence in financial

markets, including to improve investor protection, and to foster competi-

tion among market players to the benefit of investors and firms that need

access to capital. The MIFID II/MIFIR regime contains many important

measures in this regard.

However, experience has shown that there is still a risk of regulatory arbi-

trage and non-harmonised application, which harm transparency for inves-

tors and market integration efforts. Considering this and the short time

since the last review was concluded, we recommend a targeted review ad-

dressing specific shortcomings and unintended or overlapping interactions

with existing or new regulations, based on thorough impact assessments to

ensure a framework fit-for-purpose.

Overall, we recommend the Commission to look at solutions to further

strengthening transparency and investor protection, especially in the fol-

lowing four areas.

1. Investor protection

Transparency, comparability and access to adequate information is crucial,

allowing investors to make informed investment decisions. However, given

the nature of products and market developments we believe it is equally

important to continue to ensure that only suitable products are distributed

to retail investors, thereby avoiding misconduct or misselling of products.

Moreover, we stress that quality, not quantity of available information to

the intended segment of investors and efficiency in the system is highly

relevant to activate participation of stakeholders.

Furthermore, based on our experience,

we suggest that the Commission

adjust and clarify certain requirements to the rules regarding third party

BUSINESS AND FINANCIAL

AFFAIRS

Slotsholmsgade 10-12

1216 Copenhagen K

Denmark

Tlf.

+45 33 92 33 50

Fax.

+45 33 12 37 78

CVR-nr. 10092485

EAN nr. 5798000026001

[email protected]

www.em.dk

https://www.finanstilsynet.dk/~/media/Nyhedscenter/2019/RAPPORT-temaundersgelse-050219-

pdf.pdf?la=da

Report is only available in Danish.

EUU, Alm.del - 2019-20 - Bilag 653: Notat og høringssvar vedr. EU-Kommissionens offentlige høring om MiFID II/MiFIR

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payments (inducements), without revisiting the full regime. This could en-

sure that information on inducements (costs) and the quality enhancing ser-

vices provided is more transparent to and easily understandable for inves-

tors.

2. Technology and digitalisation

Given the increased use of technology and digitalisation in this space, with

possible disruptive effects, the regulation should include future-proof solu-

tions that allow for use and adaptation to the best possible technological

solutions available while ensuring adequate risk mitigation processes so the

goals of the rules continue to be met, including investor protection.

3. Trade transparency

Based on our experience there are still challenges with pre- and post-trade

transparency, mainly due to continued trading outside of lit markets, frag-

mented data and poor data quality. Furthermore, for non-equity instruments

the extensive use of optional national discretions challenge the level play-

ing field.

4. Market data and Consolidated Tape

In the complex discussions with regard to fair pricing of real-time market

data and consolidated tape, the main issue should be to ensure legal clarity

in the current pricing rules. A trading venue should be able to include a fair

amount of the costs for market data as well as general costs in the price to

ensure a reasonable balance between data quality and fair competition.

While access to information is important, we are skeptical towards the fea-

sibility of a fully-fledged, real-time consolidated tape due to its complexity,

data issues and costs. Assembling high quality market data on post-trade

information on all financial instruments seems to be a more viable option.

In conclusion, we strongly support the overall MIFID/MiFIR-regime and

the aim of achieving even more transparent trading and information to in-

vestors. We look forward to contributing actively to the revision process.

Attached please find our specific replies to the consultation document. As

always, I am at your disposal should you have any questions or comments.

Yours sincerely,

Simon Kollerup