Boerse_Berlin_Equiduct

Monitoring 33European Legislation The Markets in Financial Instruments Directive (MiFID) implemented in November 2007 was the first step to harmonise European capital markets. It has been acknowledged that MiFID has had some positive effects including facilitating the growing competition between trading platforms. However, most experts agree that it has failed to provide investors with best execution. Being a directive, MiFID allowed its member states some freedom in implementing the directive into national law. Therefore national legislation continues to vary from member state to member state. Furthermore, MiFID concentrated on trading but ignored the next step: clearing. Acknowledging these problems, the EU commission presented a more profound regulation of European capital markets and financial services. In addition to the comprehensive revision of the current MiFID, called MiFID II, a new regulation called Markets in Financial Instruments Regulation (MiFIR) is being worked on. In the second half of 2012 the European Market Infrastructure Regulation (EMIR) is due to take effect. It will aim to harmonise the authorisation and supervision of the European clearing houses. Both MiFIR and EMIR are regulations and therefore will take direct effect in all European member states. Thus the European Commission ensures that the new legislation is congruent in all member states. The European Securities and Markets Authority (ESMA) is the successor of CESR. ESMA works mainly with regulations and thus will close the gaps that were the result of directives being implemented in national law by the member states. Basically ESMA is a federation of national supervisory authorities. Its board consists of high ranking capital markets controllers of the 27 EU member states. It is to be expected that due to ESMA the harmonisation of the European financial market will proceed faster than in the past. ClearingMonitoring

Boerse_Berlin_Equiduct

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