FR AMF Bond Market Transparency
On May 20, FR AMF issued assessment on framework of MIFID II.
- AMF issued first assessment of bond market transparency introduced by MiFID II.
- Over 2yrs after MiFID II came into force, decided to assess measures introduced.
- Particularly conditions for access to, use of post-trade transparency data by market.
- Post-Trade Transparency
- Since Jan. 3, 2018, post-trade transparency measures have been extended, beyond equity, to equity-like instruments, and also to other instruments, including bonds.
- This information, including volumes, prices and time of transactions, is to be published whether transactions take place on a trading platform or they are carried out OTC.
- Must be within prescribed deadlines and via approved publication arrangements.
- AMF Analysis
- Analysis, carried out on the scope of debt securities issued by French companies.
- Revealed that the transparency of transactions is currently insufficiently accessible, reliable, exhaustive and hence does not enable investors to make effective use of it.
- Transparency is derived from many different sources: a dozen platforms, to which are added numerous APAs (approved publication arrangements) for OTC transactions.
- However data vendors do not currently consolidate full range of available data sources.
- Participants therefore do not always have a complete view of the market.
- Market participants still find it difficult to access data since some trading venues and data reporting services still do not meet all criteria defined by ESMA for accessibility.
- There is data that is currently of questionable quality and potentially non-exhaustive.
- For example, the ratio of overlap between transparency data and reporting to the regulator is estimated to be between 25% and 45% in terms of volumes traded.
- Low level would not appear to be fully explained by differences in reporting rules.
- Going Forward
- AMF is committed to ensuring transparency in bond markets is properly implemented.
- It will continue to work on improving the quality of reporting, both in terms of post-trade transparency and transaction reporting to the regulator.
- Bolster compliance with level 3 measures by platforms, APAs with respect to access.
- AMF is promoting international coordination with the other European regulators.
- Finally, the AMF supports the introduction of a single consolidated tape in Europe.
||B/D; Bank; Exch; OTC
||Rp, PR, 5/20/2020; MIFID/MIFIR Dir 2014/65, Reg 600/2014
||Compliance; Legal; Trade Reporting
|Reg. Last Update
Last substantive update on 05/22/2020