Research on bonds and certain stocks would be exempt from trading rules under new proposals from the European Commission, as part of a COVID-19 recovery package.
The changes would apply to unbundling rules under the Markets in Financial Instruments Directive II, the commission said in a news release and set of related documents published Friday.
MiFID II, which went into effect in January 2018, aims to promote investor protection, best execution and transparency in European trading markets. One of the rules saw the unbundling of payments for trade execution and investment research.
“The proposed changes to MiFID II will contribute to Europe's recovery by facilitating investments in the real economy and freeing up resources for both firms and investors,” the commission said.
Rules governing the provision of research on small- and midcap firms and fixed-income instruments will be “partially revisited,” it said. “The exceptional circumstances resulting from the coronavirus pandemic have instilled a sense of urgency into the debate on investment analysts’ research.”