EU strikes a deal to set out new market rules

 
City A.M. Reporter
EUROPEAN Union states struck a deal yesterday to overhaul the bloc’s stock, bond, derivatives and commodities markets, an EU official said, ending a near two-year deadlock.

Ambassadors from the 27 member states meeting in Brussels agreed to update rules known as MiFID to catch up with trading technology and plug supervisory gaps highlighted by the financial crisis four years ago.

“There is in substance an agreement to be confirmed by ambassadors on Monday,” an EU official close to the talks said on condition of anonymity.

Progress on the draft law that was proposed in October 2011, had been deadlocked as demands from Britain, Germany and France split members states into opposing camps.

“It’s been done. The deal is sensible,” an EU member state diplomat added.

The updated MiFID rules will create organised trading facilities or OTFs, a new breed of trading platforms for derivatives which are currently traded privately among banks.