Maijoor: Mifid II liquidity easier to recognise than define

Author: Tom Young | Published: 6 Jun 2014
Esma’s chairman on the difficulty of defining liquidity
European Securities and Markets Authority (Esma) chairman Steven Maijoor has admitted that the regulator is still grappling with definitions of what instruments should be defined as illiquid or liquid.

The Markets in Financial Instruments Directive (Mifid II), released for level one consultation on May 22, will result in a new regime for pre- and post-trade transparency for a variety of asset classes.

While Mifid I trade transparency only concerned equities, Mifid II will extend the scope of transparency to bonds, exchange-traded funds, and all classes of derivatives.

Speaking at the International Capital Markets Association’s AGM in Berlin yesterday, Maijoor insisted that Mifid II intends to achieve this without harming liquidity.

This,...