ECMI Research Reports

Research Reports can have three purposes: to present a synthesis of recent academic literature that may be pertinent to both market participants and regulator; to analyse how certain market trends may be altering the financial landscape in Europe; or to offer views on the regulation of capital markets (10-50 pages). You can download an electronic copy of our research reports for free by following the links below.

Rethinking Asset Management: From Financial Stability to Investor Protection and Economic Growth

ECMI-CEPS Task Force Report, April 2012: The final report of the task force 'Rethinking Asset Management' examines the asset management industry and its links with financial stability, product integrity, investor protection and the real economy. The report evaluates the many legislative proposals on the table – including the implementation of the AIFMD, MiFID II and PRIPS – as well as the discussions on product integrity in UCITS and ‘shadow banking’. The report was written by Mirzha de Manuel, CEPS-ECMI Researcher.

Setting the Institutional and Regulatory Framework for Trading Platforms: Does the MiFID definition of OTF make sense?

Research Report, April 2012: As discussions around the revision of MiFID are heating up, this paper tries to set a new regulatory and institutional framework for multilateral and bilateral execution mechanisms of complex financial instruments, such as OTC derivatives and fixed income products. The author argues that the current MiFID framework is equipped to capture a great deal of multilateral derivatives and fixed income trading, but the Directive fails to provide a complete definition of bilateral execution mechanisms and has narrowed it to mainly own account trading (ex: systematic internalisers).

MiFID 2.0: Casting New Light on Europe´s Capital Markets

ECMI Task Force Report, April 2011: An outstanding conclusion to the work of the task force set by ECMI and CEPS on the review of the Markets in Financial Instruments Directive (MiFID), this report provides a generous set of findings drawn from current legislative proposals, academic literature, and market views. It identifies potential market failures and offers valid alternatives, while focusing on three core areas: transparency, market structure, and provision of investment services.

MiFID Implementation in the midst of the crisis

ECMI Research Report 6, February 2011: This report summarises the main results of a survey conducted by the European Capital Markets Institute (ECMI) during the period December 2009 - July 2010. The survey aims at investigating the actual implementation of the Markets in Financial Instruments Directive (MiFID), two years after it came into force.

Shaping Reforms and Business Models for the OTC Derivatives Market: Quo vadis?

ECMI Research Report 5, April 2010: Now that the worst of the financial storm is over, regulators are setting new strategies to deal with the systemic importance of the €427 trillion ($604 trillion) over-the-counter (OTC) derivatives market. This paper explores the three major sources of disruptive effects in OTC derivatives: liquidity, counterparty risk and legal uncertainty. These risks affect the value chain of a typical derivative transaction and weaken the economic and legal rationale behind their widespread use.

An EU-Listing Small Business Act

ECMI Research Report #, March 2010: This report by Fabrice Demarigny, Global Head of Capital Markets Activities of MAZARS Group, gives recommendation on establishing a proportionate regulatory and financial environment for Small and Medium-sized Issuers Listed in Europe (SMILEs). The report addresses the impact of the FSAP directives on listed Small and Medium-sized Companies.

Restoring Investor Confidence in European Capital Markets

Report of an ECMI-CEPS Task Force, February 2010: The financial crisis has had a severe impact on European financial markets. Institutional and retail investors have suffered losses and, most notably, a diffused loss of confidence in the efficient functioning of the market.

Fairness Opinions and Capital Markets: Evidence from Germany, Switzerland and Austria

ECMI Research Report 4, January 2009: This paper by Sebasian Lobe and Nils-Christian Schenk provides the first empirical evidence of fairness opinions in Europe. Legal requirements concerning the use of fairness opinions in mergers and acquisitions are significantly different in Germany, Switzerland and Austria. We examine the determinants of fairness opinions for target firms in these various regulatory settings, and moreover, investigate the impact of such opinions on the abnormal returns of target firms.

The Need for Transparency in Commodity and Commodity Derivatives Markets

ECMI Research Report 3, December 2008: This paper by Piero Cinquegrana argues that transparency-boosting measures specifically tailored to commodity and commodity derivatives markets are much needed. In particular, encouraging the creation of a clearing infrastructure for OTC commodity and commodity derivatives markets would be desirable. Moreover, EU regulators should consider setting up a new, more effective market abuse regime aimed at preventing manipulation in both the physical and financial commodities markets.

Pouring Old Wine Into New Skins? UCITS and Asset Management after MiFID

Report of an ECMI-CEPS Task Force, April 2008: The European fund management industry has undergone profound changes since the 1985 Directive on Undertakings for Collective Investment in Transferable Securities (UCITS). Today, there are about 32,000 UCITS products, representing over €6 trillion of assets under management. These facts point to the success of the UCITS brand as one that is operational and reliable, all the while securing a high degree of investor protection.