The European Securities and Markets Authority (ESMA) has published a speech given by its Executive Director, Verena Ross. The speech is entitled Liquidity and new financial market regulation.

In her speech, Mrs Ross covers:

• the implementation of revisions to the Markets in Financial Instruments Directive (MiFID II);
• liquidity and MiFID II; and
• the implementation of the European Markets Infrastructure Regulation.

In relation to the implementation of MiFID II, Mrs Ross gives a useful insight into ESMA’s work once the MiFID II Level 1 text is finalised. She states that where the European Commission needs to adopt delegated acts, it may ask ESMA for technical advice on which ESMA will consult the market through a single consultation paper. However, for those areas where ESMA is required to develop technical standards, it intends to first publish a Discussion Paper and hold a public hearing on the key strategic elements before beginning the more detailed drafting. This process, says Mrs Ross, should allow sufficient input to develop the draft technical standards on which ESMA will publically consult again later in the year/early next year. Mrs Ross adds that ESMA started its preparatory work some time ago and expects to issue the Discussion Paper shortly after approval of the Level 1 text.

View Liquidity and new financial market regulation, 25 February 2014