The MoU, however, will not make any decisions around the adoption of equivalence or deal with access of UK-based firms to the single market or EU firms’ access to the UK market.
AFME’s latest equity primary markets and trading report found that average daily equity turnover declined by €15 billion YoY, while also noting declines in block trading and double volume cap instrument suspensions.
With the US confirming its shift to T+1 settlement in 2024, Wesley Bray looks at the impact this will have globally, whether or not the UK and EU should follow suit and how trading desks will be impacted by the move.
The Association recommended that volume caps should be removed or, alternatively, suspended for a five-year period, after which ESMA should assess whether the cap is negatively impacting price formation.
Industry association warns regulators that the ongoing Mifir Review could risk holding back EU equity markets; is calling for a diverse range of trading mechanisms in Europe.
The latest Equity Primary Markets and Trading Report from AFME also shows that equity underwriting on European exchanges declined 61% in 2022 – although average daily equity trading is up 9%.
Instead, the association has laid out its own recommendations which it predicts will protect the role of a market maker as a liquidity provider and banks as shock absorbers.
AFME’s report noted 62 new suspensions in Europe for surpassing pre-determined thresholds in April alone.
Association recommends that a better framework be laid out to measure settlement efficiency; warns against the impact of mandatory buy-ins on liquidity and competitiveness.
Industry association has hit out against proposed changes to the systematic internaliser regime in equities and transparency thresholds in fixed income.