Could MiFID II be delayed by a year?


Earlier this week, Steven Maijoor, chairman of the European Securities Market Authority (ESMA), told MEPs that the timing for stakeholders and regulators alike to implement the rules and build the necessary IT systems (for MiFID II) is extremely tight.

Even more, there are a few areas where the calendar is already unfeasible. This relates to the fact that it will take some time, and well into 2016, before the text of the regulatory technical standards (RTS) will be stable and final.

According to Steven Maijoor, chairman of ESMA:

The building of some complex IT systems can only really take off when the final details are firmly set in the RTS and some of the most complex IT systems would need at least a year to be built. We have therefore raised these timing issues with the European Commission…..”

Full text of speech here and coverage in FT.COM here.

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Staying with regulation, Abide Financial, the regulatory reporting provider, part owned by ICAP, has applied to become a Trade Repository under EMIR, and expects to be among the largest three Trade Repositories by processed volumes of EMIR reportable transactions.

The company said that the move was:

…largely driven by client demand for an end-to-end EMIR reporting solution, where Abide Financial will provide absolute transparency of the reporting process. Transparency is becoming an ever increasingly important element of the service driven by regulator’s interrogation of EMIR reporting accuracy and completeness.

The firm will be one of the few true end-to-end reporting solution providers in the market serving institutional clients subject to multiple and changing transaction reporting regimes. It is also in the process of launching its accelerated client on-boarding programme for MiFID II/MiFIR compliance from the January 2017 implementation date.

Looking at the ESMA website, there are currently six Trade Repositories in Europe as shown below:

Trade repositoriesESMA list of European Trade Repositories

John Abel, Founding Director of Abide Financial and the Chief Executive Officer of the Trade Repository, said:

“…is the logical final step in building our all-encompassing multi-regime transaction reporting infrastructure. Under our direct control, the Trade Repository will enable us to deliver a high quality, seamless single-point reporting solution for a global client base. We also have a very strong team of people with extensive expertise in managing trade repository operations in the past, who are charged with delivering market-leading Trade Repository service development.”

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