Policy portal Stability & Supervision

When trust in the financial system disappears, panic sets in: fire sales of financial assets and bank runs can make the entire system collapse. Taxpayers are forced to bail out “too-big-to-fail” institutions to protect essential economic functions (deposits, credit, payment systems).

Mitigating implicit “moral hazard” requires sound prudential policies protecting essential banking services from excessive risk-taking and maintaining adequate capital levels to cover possible losses. Well-resourced, and independent supervision is also key. Finally, prudential regulation must also respond to new risks related to digitalisation (see “Digital Finance”) and climate change (see climate risk under “Sustainable Finance”).

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5 PUBLICATIONS

Factsheet

Cheat sheet: What is MiFID II (Level 2)?

Background; Actions of Finance Watch; Key risks; and our Publications on this dossier.
Consultation response

Response to ESMA consultation on MiFID II/MiFIR Technical Standards

Position paper

Finance Watch’s assessment of German High-Frequency Trading Act

In January 2013, Finance Watch was invited to give evidence at a public hearing on the proposal for an High-Frequency Trading Act (“Gesetzentwurf zur Vermeidung von Gefahren und Missbräuchen im Hochfrequenzhandel”) organised by the Finance Committee of the German Bundestag.
Position paper

MiFID II position paper “Investing not betting”

Position paper “Investing not betting” on MiFID II, the EU’s revised Markets in Financial Instruments Directive. Press release 24 April 2012.
Speech

ECON evidence on MiFID

Finance Watch today gave evidence at a European Parliament hearing on the planned update to MiFID, the EU’s rules governing markets for financial instruments, and on high frequency trading.

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