Supplément AMAFI- Revue Banque : « Politiques monétaires, taux, inflation ».
The International Council of Securities Associations held its interim meeting in London on 17 November. Beyond discussing ICSA’s own operation, members also had the opportunity to talk with Dietrich Domanski, Secretary General of the Financial Stability Board, about systemic threats, which are at their most intense since the financial crisis of 2008.
Mr Domanski spoke about the elevated level of inflation and increased interest rates, which are causing financing conditions to tighten even as households, corporates and governments are grappling with worryingly high debt levels. He pointed out the liquidity issues for non-bank financial institutions and the resulting impact on financial stability due to their greater role in financing the economy.
He also highlighted the need for a balanced regulatory framework for crypto-assets, not only to capture the risks more effectively, but also to promote the development of these assets, given the potential benefits. Mr Domanski additionally spoke about the FSB’s work to support a global approach to disclosure of the financial risks associated with global warming.
Retail Investment Strategy
The European Commission published on 26 September a questionnaire on new provisions that it is considering as part of its retail investment strategy, with a view to enhancing the appropriateness and suitability regimes. An open hearing was held on the draft on 28 September. AMAFI took part and stressed the need to maintain two separate regimes, since not all clients want to be advised on their investments.
After telling the Commission that its questions could not be answered in such a short timeframe, France’s professional associations are currently working on a shared position paper that they will shortly submit to the Commission. AMAFI, along with Germany’s derivatives association DDV and the French Treasury, held a meeting on 24 October to discuss the two associations’ shared priorities for the retail investment strategy (AMAFI / 22-78). Among the topics broached were alternatives to a potential ban on inducements, with a particular focus on the value for money of marketed financial instruments and improved transparency and delivery procedures for investment services targeting retail customers.
Product governance
AMAFI submitted numerous observations (AMAFI / 22-69) to the consultation launched in early July by ESMA on updating its guidance on product governance requirements to reflect the integration of ESG criteria in MiFID II. The association called for flexibility in the methodologies that could be used to define sustainability criteria for financial instruments, including with regard to the types of ESG data used.
This flexibility is needed throughout the period during which the data disclosable under Europe’s new sustainable finance legislation (particularly CSRD) will be unavailable because the legislation will not yet have come into effect.
Impact of inflation on MiFID II implementation
ESMA released a statement on 27 September concerning the impact of inflation on the provision of investment services. It reminded firms to consider inflation and inflationary risks when providing investment services to retail customers and to pay particular attention to the provision of information and to suitability and product governance requirements. AMAFI is working with the members of its Compliance Committees to draft an interpretative note clarifying some of the operational impacts of ESMA’s statement.
AMAFI-Portuguese Finance Ministry meeting,14 November
With negotiations underway within the European Council on the MiFIR review, AMAFI Chairman Stéphane Giordano and Director of European and International Affairs Arnaud Eard met with representatives of the Portuguese Finance Ministry to discuss the compromise text prepared by the Council’s Czech presidency.
AMAFI spoke about the importance of enhancing the competitiveness of European businesses and making Europe’s regulatory framework more attractive. It welcomed the Czech proposals on equity and non-equity transparency regimes, aimed at preventing a regulatory gap with the United Kingdom which could trigger a transfer of liquidity.
Portugal’s representatives expressed overall support for the proposals on the non-equity transparency regime. However, they were more cautious on the proposed amendments to the equity transparency regime, which they felt were too similar to those mooted by UK authorities.
On the topic of a pre-trade consolidated tape for equities, AMAFI and the Portuguese representatives expressed disappointment at the turn taken by negotiations within the European Council, which appear to be tilting towards establishing only a post-trade tape.
As regards payment for order flow (PFOF), which is critical to achieving an agreement under the Czech presidency, AMAFI insisted that if a ban were introduced, it must be restricted to equities and should not extend to other products such as warrants, whose price discovery mechanism is not order-linked. Portugal’s representatives said they were not in favour of a ban and supported better regulation of PFOF-related practices.
AMAFI-European Parliament meeting, 17 November
As part of talks underway within the European Parliament’s ECON Committee, an AMAFI delegation led by the Chairman met with MEP Danuta Hübner, the rapporteur for the MiFIR review, to discuss the proposed amendments submitted by MEPs. AMAFI had provided its own draft amendments in mid-October, which addressed the creation of a pre-trade consolidated tape for equities as well as attractive equity and non-equity transparency regimes (AMAFI / 22-70).
While the rapporteur was fairly upbeat on the likelihood that the final report would include a proposal to create an ambitious pre-trade consolidated tape for equities, she was more doubtful on reforming the equity transparency regime to incorporate questions of EU actors competitiveness. AMAFI once again reiterated the need to take account of the reforms currently under consideration in the UK and ensure that trading volumes do not migrate to Britain because Europe’s equity and bond markets are insufficiently attractive and competitive.
On the question of PFOF and a possible ban, Ms Hübner pointed out that this was the most divisive topic and that negotiations would be delicate.
After numerous discussions with the French Treasury and the ACPR on Class 1 investment firms and their authorisation applications, discussions are continuing on Class 2 investment firms (smaller, non-systemic institutions), with particular focus on the integration of Pillar 2 requirements, namely the additional equity that might be required by the supervisory authority as part of a standardised process.
AMAFI obtained clarification from the ACPR about how Pillar 2 will work and especially about the internal capital-adequacy assessment process and the prudential supervision and assessment process (AMAFI / 22-81).
Les enjeux prioritaires de la révision de MiFIR pour l’AMAFI sont identifiés depuis plusieurs mois. Ils concernent l’établissement d’une consolidated tape (CT) et ses modalités, les règles de transparence action et non action, le coût des données de marché, l’obligation de négociation sur les dérivés (DTO), ainsi que l’interdiction éventuelle du Payment for Order Flow (PFOF), pratique par laquelle une plateforme de négociation rémunère l’intermédiaire qui lui transmet des ordres. Durant les mois de décembre et janvier, l’Association a donc engagé plusieurs actions auprès de membres du Conseil et du Parlement européen afin de faire valoir ses propositions.
Conseil européen
Ainsi, Stéphane Giordano, Président de l’AMAFI, avec des membres de la Commission Action Européenne, a discuté avec des représentants du Ministère des finances espagnol pour notamment souligner l’importance d’une CT pré-négociation pour les actions. A également été relevé le besoin de considérer les réformes envisagées par le Royaume-Uni en matière de transparence dans le cadre de la Wholesale Markets Review pour éviter les transferts de liquidité depuis l’Union. Les interlocuteurs rencontrés se sont montrés sensibles aux différents points soulevés à cette occasion.
L’accord finalement trouvé au sein du Conseil fin décembre a justifié que l’Association maintienne sa mobilisation sur
certains points :
En revanche, l’AMAFI se satisfait des propositions relatives au régime de transparence equity, qui a été simplifié, à celui de la transparence des internalisateurs systématiques, qui n’a finalement pas été renforcé, ou encore aux différés proposés s’agissant de la transparence non-equity. Elle soutient par ailleurs l’approche proposée concernant l’obligation de négociation sur les dérivés (DTO), chaque État membre ayant la possibilité de demander sa suspension à la Commission européenne. L’Association milite toutefois pour que l’ESMA puisse d’ores et déjà suspendre temporairement la DTO avant la mise en œuvre de la révision de MiFIR. L’enjeu est d’éviter que les succursales d’établissements de l’Union basées au Royaume-Uni ne risquent d’être soumises à une double obligation, britannique et européenne, lorsqu’elles traitent avec des clients non-européens, ce qui ruinerait leur compétitivité.
Parlement européen
Les négociations au sein du Parlement européen étant en cours, l’AMAFI a poursuivi son engagement en janvier 2023 en rencontrant les assistantes des eurodéputées Stéphanie Yon-Courtin et Nicola Beer et le conseiller politique du groupe politique S&D.
En parallèle, le groupement des associations de marché européennes dont l’AMAFI est membre, l’EFSA (European Forum of Securities Associations), s’est adressé aux eurodéputés (AMAFI / 22-87) afin de souligner l’importance de préserver et de développer la compétitivité et l’attractivité du marché secondaire européen dans un environnement post-Brexit. Le marché a en effet un rôle central à jouer afin de permettre à l’Union de faire face aux nombreux défis de financement qu’elle rencontre et ainsi lui permettre de développer son autonomie et sa souveraineté.
Par ailleurs, l’EFSA a co-signé une note de position (AMAFI / 23-08) en janvier avec l’EFAMA (représentant la gestion
d’actifs en Europe), BVI (les sociétés de gestion allemandes) et les Nordic Securities Associations (regroupant les associations marché danoise, finlandaise, norvégienne et suédoise) visant à souligner leurs priorités communes et ainsi peser davantage dans le cadre des négociations en cours au sein du Parlement européen.
