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Relief at Mifid II delay is premature 

November 17, 2015

Anne Plested, Fund Strategy

ESMA has called for delays to the Mifid II implementation deadline. While some commentators have suggested this puts an end to the punishing timeline that the industry is currently wrestling with, things are rather more complicated and an industry-wide sigh of relief may be premature.

First of all, ESMA cannot force a delay, that’s a decision for the European Commission (EC). Even if Steven Maijoor, ESMA’s chair, has concerns around the “unfeasible” Mifid II calendar, the EC might not agree with his assessment.

We had a similar situation in 2013 when ESMA asked for a delay to the EMIR trade reporting rules. Back then, the EC declined to sanction any extension of the implementation deadlines. For its pleas for a delay to succeed now, ESMA and the industry may need stronger arguments than those tabled to date, which include concerns over the challenging timescales for their own readiness, and for financial market participants to build the necessary IT systems. Read more

 
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