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EU Financial-Market Overhaul Faces Delay After Industry Pushback 

November 10, 2015

Julia-Ambra Verlaine, Bloomberg Business

The European Union, under pressure from the financial-services industry, may delay by a year its overhaul of market rules affecting everything from price-disclosure by bond traders to regulation of commodity derivatives trading.

The European Securities and Markets Authority, an EU regulator, warned that “it won’t be possible to implement certain aspects” of the legislation by January 2017, when the rules are scheduled to take effect, said Vanessa Mock, a spokeswoman for the European Commission, on Tuesday. “Our preliminary view is that we share their concerns and that a delay might be necessary.”

The EU’s bid to revamp its market legislation, known as MiFid, is a centerpiece of the 28-nation bloc’s work to shore up regulation following the financial crisis of 2008. The new rules would affect firms ranging from Deutsche Bank AG to Goldman Sachs Group Inc. Industry groups pushed for a delay, arguing that companies needed more time to adapt to the sweeping changes, many of which entail extensive technical refitting.

A delay “would be a welcome recognition of the fact that it will not be practicable for much of the technology and reporting to be put in place by Jan. 3, 2017,” said Michael McKee, a partner at DLA Piper, the global law firm. That’s especially the case as many of the details underlying the rules still need to be worked out, he said.

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