MiFID II implementation delayed

The European Commission has proposed extending for a further year, until 3 January 2018, the deadline to comply with the revised Markets in Financial Instruments Directive (MiFID II).

The European Securities and Markets Authority (ESMA) has advised the Commission that more time is needed for national competent authorities and market participants to put in place systems capable of supplying the necessary data from around 300 trading venues on some 15 million financial instruments.

The original directive was introduced in 2007 in response to the financial crisis and contains rules for European securities markets, investment firms and intermediaries. The revised MiFID II aims to address recent developments by:

·        ensuring that trading takes place on regulated platforms;

·        introducing rules on high frequency trading;

·        improving the transparency and oversight of financial markets, including derivatives markets and price volatility in commodity derivatives markets;

·        improving conditions for competition in the trading and clearing of financial instruments; and

·        strengthening the protection of investors by introducing organisational and conduct requirements which build on the rules already in place.

See www.bit.ly/1V34Jfp.