A leaked draft of proposed European financial reforms has revealed that the European Parliament is planning to take extreme steps to reform market infrastructure and transparency requirements in Europe.
The reforms, an update of the Markets in Financial
Instruments Directive (Mifid), which were leaked last month,
took many in the industry by surprise with their scope and
potential impact on the derivatives landscape within
In particular, the fact that one of the documents was being
proposed as regulation rather than a directive meaning that it
is immediately enforceable across the 27 European member states
was widely viewed as an unexpectedly bold move by the European
The proposals are still in draft form and will be amended
prior to their publication this month before a debate and vote
is held, a process that is expected to complete in the first
quarter of 2012.
However, the two documents, the draft regulations Mifir and
an update of Mifid, provide some clues as to how drastic the EU
regulation will be. Under the proposals, exchanges will have to
provide open access to clearing, an idea that was dropped from
the parallel Emir reforms earlier this year.
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