Monday Jul 28, 2014 Search
Weather | Athens
31o C
23o C
News
Business
Comment
Life
Sports
Community
Survival Guide
Greek Edition
EU lawmakers clinch deal on financial market rulebook overhaul

European Union lawmakers clinched a deal that overhauls the bloc’s financial-market rulebook in a bid to toughen requirements and remedy deficiencies laid bare in the 2008 financial crisis.

The bill includes curbs on high-frequency trading and commodity-derivative speculation, as well as measures to push more activity onto regulated platforms. The accord follows more than two years of work on the plans since they were presented by Michel Barnier, the EU’s financial services chief.

“These new rules will improve the way capital markets function to the benefit of the real economy,” Barnier said in an e-mailed statement. “They are a key step towards establishing a safer, more open and more responsible financial system and restoring investor confidence.”

The EU’s bid to revamp its market legislation, known as Mifid, is a key piece of the 28-nation bloc’s work to implement agreements reached by the Group of 20 nations in the wake of the turmoil that followed the 2008 collapse of Lehman Brothers Holdings Inc. Members of the European Parliament and officials from Greece, which holds the rotating presidency of the EU, resolved outstanding differences on the law over more than seven hours of negotiations that concluded late Tuesday.

The accord must still be formally approved by the assembly and by national governments to take effect. While the law is set to apply 2 1/2 years after it’s published, some individual measures have longer transition periods.

Banks “remain concerned about the impact of the new rules on the real economy by limiting market liquidity and hurting the competitiveness of European firms,” Gergely Polner, a spokesman for the British Bankers’ Association, said in an e-mailed statement. “However, we look forward to working together with the European authorities on technical standards and the implementation” of the measures.

Key issues going into the final meeting included to what extent the revamped law should cover derivatives linked to energy markets and also what investor protection rules should be included in the legislation.

The rules for commodity derivatives include an “effective system” of position limits that will “curb speculation and help decrease price volatility and inflation,” Arlene McCarthy, a U.K. lawmaker in the parliament’s Socialist group, said in an e-mailed statement.

“High and volatile food prices have a devastating impact” on poorer countries, she said.

Under the accord, it will fall to the European Securities and Markets Authority, an EU agency based in Paris, to provide guidance to regulators on how the position limits should be calculated.

The rules on high-frequency trading, which include a so- called tick size regime limiting the minimum size of price movements on financial markets, will “slow down the pace of trading, increase transparency and ensure prices reflect current market conditions,” McCarthy said.

Other open issues were the setting of rules on how clearinghouses can get access to trade-feed data from rival service providers, and conditions for how non-EU based companies can offer services in the bloc.

“Transitional rules will ensure the smooth application” of the provisions on trade-feed data, the European Commission said in a statement.

The deal also links market access for non-EU based firms to assessments by the European Commission of whether countries apply regulations that are as rigorous as those enforced in the bloc. This system would apply to investment services targeted at institutional rather than retail clients.

“This is one of the most important legislative reforms of Europe’s capital markets with the potential to enhance transparency, improve price formation, and increase fairness and confidence across a range of markets,” said Simon Lewis, chief executive officer of the Association for Financial Markets in Europe, a group that represents lenders including Credit Suisse Group AG, BNP Paribas SA and Deutsche Bank AG.

Once adopted, the revised rules will update legislation from 2004. This earlier law focused mainly on the equities markets and measures to break down monopolies enjoyed by national exchanges.

The deal closes “loopholes and ensures that trading, wherever appropriate, takes place on regulated platforms,” the Commission said.

[Bloomberg]

ekathimerini.com , Wednesday Jan 15, 2014 (10:51)  
Great margin for growth in exports
Parliament’s Budget Office says third bailout may be needed
Ryanair ‘not particularly interested’ in Cyprus Air
August 2 expected to be Greek tourism’s D-day
Ministry appeals to keep limit on prescriptions
Faced with the prospect that its attempts to rein in spending on medicines will be scuppered, the Health Ministry appealed on Monday against a Council of State ruling to temporarily suspend ...
Universities aghast at new schools opening
University officials have decried the government’s decision to open two new departments at the same time that funding for the tertiary institutions continues to be slashed. It emerged that t...
Inside News
VOLLEYBALL
Volleyball national team second in European League
Much as the national volleyball team tried to repeat in the finals of the European League the feat it had achieved in the semifinals, it failed to overturn the advantage Montenegro had got f...
SOCCER
Ranieri says he has little to change in Greek national team
The Hellenic Football Federation (EPO) presented Claudio Ranieri as the new Greece coach for the next couple of years, after the Italian manager signed his contract in Athens on Friday. “I l...
Inside Sports
COMMENTARY
Weighing all the factors
Certain people in the know continue to believe that snap elections will take place in the fall. Prime Minister Antonis Samaras is obviously aware of this trend, which is why he told Parliame...
EDITORIAL
Clear rules, for everyone
If we want to deal with the economic crisis, we need clear rules. A large number of individuals and businesses have amassed huge debts they cannot service. And some worrying symptoms have al...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
 RECENT NEWS
1. Ministry appeals to keep limit on prescriptions
2. Great margin for growth in exports
3. Universities aghast at new schools opening
4. Anastasiades sees lack of progress on Cyprus talks
5. Supreme Court deputy prosecutor says ex-finance chief should be tried over ‘Lagarde list’
6. UN envoy says he has new ideas, not proposals as he arrives in FYROM
more news
Today
This Week
1. Defense Minister Avramopoulos to represent Greece at European Commission
2. Tree collapses in village square, killing nine-year-old boy
3. Euro inflation seen testing ECB patience as stimulus takes time
4. Maziotis moved to Diavata Prison in Thessaloniki
5. Multi-bill containing prior actions ready for Parliament
6. Minister mulls fixing food and drink prices at non-private beaches
Today
This Week
1. Climber dies in Mount Olympus fall
2. Greek sovereign debt at 174.1 percent of GDP in first quarter
3. Unequal after death
4. Hedge fund Dromeus turns Greek tragedy to triumph with 160 pct gain
5. Quadriplegic woman on life support 'dies due to unpaid power bills'
6. Front-line threats
   Find us ...
  ... on
Twitter
     ... on Facebook   
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright © 2014, H KAΘHMEPINH All Rights Reserved.