Companies in the European Union may face an “alarming” surge in funding costs if the bloc's markets regulator pushes too many trades into the light, a bloc-wide business lobby said.
The European Securities and Markets Authority (ESMA) is fleshing out trading rules, including increasing pre- and post-trade transparency requirements for non-equities such as swaps and bonds. A public consultation on implementation of the law known as MiFID II ends on March 2.
“The potential impact of the rules is really alarming,” Erik Berggren, a policy adviser at Brussels-based lobbyist BUSINESSEUROPE, said last week in an interview. “It would be extremely worrying if an inappropriately calibrated transparency regime would depress liquidity and result in increased borrowing costs.”
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