The European Securities and Markets Authority (ESMA) has published a high-level cost-benefit analysis (CBA) for the Markets in Financial Instruments Directive II (MiFID II) and Markets in Financial Instruments Regulation (MiFIR) implementing measures.
The document should be read together with the consultation paper and draft technical standards published on 19 December by ESMA, the agency says.
The CBA mainly covers equity and equity-like financial instruments, looking at investor protection, pre- and post-trade transparency, microstructural issues, data publication and access, trading venues, commodity derivatives, market data reporting and post-trading issues.
In terms of other asset classes, such as fixed income, derivatives and FX, the report looks at the costs and benefits associated with providing best execution as required in MiFID and the switch from an OTC to an on-exchange environment.
The CBA is not yet complete, as it doesn’t include technical standards on non-equity transparency or transaction reporting. ESMA plans to publish a complete analysis in the summer of 2015, following publication of the final technical standards on MiFID II.