LONDON, Sept 1 (Reuters) - Draft European Union securities rules should be reworked to avoid damaging “unintended consequences” for investors and bond markets, Germany, France and Britain have said.
The EU’s executive European Commission is due to finalise a revamp of the bloc’s markets in financial instruments directive (MiFID) to take into account lessons from the financial crisis and advances in trading technology.
The EU’s securities watchdog, the European Securities and Markets Authority (ESMA) has proposed rules to flesh out the revised law but the bloc’s three biggest countries have slammed on the brakes.
The three countries said in a letter to the European Commission seen by Reuters that ESMA’s proposals “do not reflect the agreement” made by member states and the European Parliament in the framework law that has been approved.
The countries say that as proposed, some forms of research and investment advice would be effectively banned, while new transparency requirements for bonds could result in “significant negative implications” for markets.
Reporting by Huw Jones, editing by Carolyn Cohn