EUROPEAN UNION: MiFID II Delay

Thursday November 12 2015

The European Securities Market Authority (ESMA) has published the speech delivered by Steven Maijoor to the Economic and Monetary Affairs Committee (ECON). In the speech, Steven Maijoor mentions the implementation challenges in the run-up to the implementation date of MiFID II. Mr Maijoor goes on to state:

“I am not going to surprise anybody in the room when saying that the timing for stakeholders and regulators alike to implement the rules and build the necessary IT systems 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 RTS will be stable and final. 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, and the fact that some IT systems will not be ready in January 2017, and the uncertainty this will create as they are needed for the execution of certain elements of MIFID 2.”

The uncertainty surrounding the implementation may require a legislative response with the delaying of certain parts of MiFID II, mainly related to transparency, transaction and position reporting.

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