Ahead of the European Commission’s MiFID2/R Review, the European Forum of Securities Associations (EFSA) has published a paper calling for certain areas of the regulation to be recalibrated in order to deliver its intended policy outcome of establishing a more transparent financial system that works to the benefit of the economy and society as a whole.

MiFID 2/R, in conjunction with Level 2 and Level 3, forms the cornerstone of financial regulation for securities markets in the EU. However, there are some areas of MiFID2/R which need recalibration in order to deliver on the regulation’s original aims and to avoid unintended harm to the market, liquidity and investor choice.

The paper highlights a number of issues which EFSA members believe should be a priority in the context of a review. Areas where amendments and further review are needed include:

• Market structure
• Transparency and data quality
• Market data costs
• Cost and charges
• Product governance
• Best execution reporting
• Research