(Finance) – The European Commission has “welcomed” L’political agreement reached yesterday between the European Parliament and the Council on the 2021 Commission proposal for a revision of the regulation on markets in financial instruments (MiFIR Review). According to the EU executive, the new rules “increase global competitiveness, better integrate EU capital markets and represent a significant step towards a true Capital Markets Union”.
The revision creates a mandatory framework for the so-called “consolidated tape provider (CTP).” The consolidated tape will bring together the prices and volumes of financial instruments, such as stocks and bonds, from hundreds of execution venues across all member states into a single stream of information, equally accessible to all.
The review also contains the prohibition of the practice of “payment for order flow(PFOF) to increase the quality of execution and quantity of retail orders executed on transparent and competitive public marketplaces.
Furthermore, the MiFIR review includes improved rules on the transparency of “non-equity instrument” such as bonds and derivatives, as well as a set of rules aimed at creating robust markets for derivatives on commodity.
“Political agreement on MiFIR review marks a important step towards the Capital Markets Union and the integration of EU capital markets”, he commented Mairead McGuinnessCommissioner for Financial Services.
Through the various improvements, “the markets will be easier to navigate and will be more efficient and attractive for EU and international investors,” McGuinness underlined.