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Mifid II trading rules rewrite means ‘inevitable delays’ 

March 22, 2016

Valentina Romeo, Fund Strategy

The rewriting of Mifid II trading rules will lead to an “inevitable” delay of the regulation, experts argue.

Last week, the European Commission sent sections of Mifid II trading rules back to Esma be rewritten, saying the latest drafts were not “up to standard”.

The Commission told the European Parliament’s Mifid II negotiating team and Esma to revise the non-equity transparency, ancillary activity exemption and position limit rules.

Michael McKee, the head of financial services regulation at global law firm DLA Piper, says the European Parliament’s rejection of three of the technical standards will be “of some concern to the industry”.

He says: “The clock is ticking on implementation and this announcement will inevitably delay the finalisation of the standards.

“The real risk is that now the industry will not know the final position [of Esma] until later in the year. This will have implications, especially for those who are more affected by the [rewriting of the trading standards], such as commodity firms.”

Non-equity transparency is a regulatory standard related to bonds. It’s about ensuring that the details of the transactions in liquid instruments are published to the wider market. Read more

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