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MiFID II headache intensifies as ESMA deadline draws near 

July 10, 2014
Elliott Holley, Banking Technology

MiFID II could cause serious problems for banks, brokers and other market participants in the run up to the January 2017 implementation, according to executives attending a meeting chaired by the European Securities Markets Authority in Paris earlier this week.

The ESMA hearing covered market structure issues, investor protection and commodity derivatives. Potential issues highlighted by participants include problems with attempting to apply level one MiFID II principles to non-equity asset classes such as fixed income, FX and OTC transactions, a possible lack of distinction between retail and institutional investors, issues with the rules that should apply to trading algorithms, and anxiety about whether ESMA will allow sufficient time for market participants to prepare.

“The market is very concerned following the introduction of EMIR trade reporting earlier this year,” said Christian Voigt, senior regulatory advisor at technology provider Fidessa. “Participants fear that the level two MIFID II text may take longer to agree than expected, leading to a mad implementation rush at the last minute. ESMA didn’t give any precise statement at the consultation, and that is frustrating for some people. It’s the uncertainty of it all.”

Read more: Banking Technology

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