MiFID II – back to square one

A proposed new law is currently making its way through the Brussels/Strasbourg law-making factory to delay the introduction of MiFID II. There is little doubt that the industry will breathe a sigh of relief when the delay is finally confirmed. However, the proposed new law has also encouraged legislators to consider further changes to the MiFID II Level 1 texts (amendments 1-3 and amendment 2), which risks undoing a lot the of political compromises it took to get it passed the first time around.

My concern is not about the proposed amendments themselves or whether they are beneficial. The issue here is that the MiFID II review was initially kicked off in 2010, and six years later we are back to square one trying to work out what the Level 1 text will finally say.

Comments
2 Responses to “MiFID II – back to square one”
  1. John Slauson says:

    Does this affect the timeline of the MAR portion of MiFID II ?

  2. Yes, the delay has some minor impact on MAR. If you look at the draft amendment for MiFIR by the European Commission (http://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX:52016PC0057&from=EN) then you can see that there are also references to MAR (Regulation (EU) No 596/2014) and the links in the MiFIR text. However, I believe the impact is not massive, because it was anticipated for a long time that MAR enters into force on 3rd July 2016 and MiFIR later. Thus, the MiFIR delay merely extends the already existing transition period in relation to MAR.

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