European Regulator Invites Consultations on MiFID II Implementation

The European Securities and Markets Authority has announced that it is launching a consultation period on the implementation of Markets in Financial Instruments Directive (MiFID II) and Regulation Regulation Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority ( Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority ( Read this Term (MiFIR).

The European Securities and Markets Authority (ESMA ESMA European Securities and Markets Authority (ESMA) is an independent Authority of the European Union that is responsible for the safety, security, and stability of the European Unions’ financial system and is charged with protecting the public. The European supervisory authority for the securities sector, ESMA was established on 1 January 2011. The European Securities and Markets Authority is an independent EU authority based in Paris. It aims to contribute to the effectiveness and stability of t European Securities and Markets Authority (ESMA) is an independent Authority of the European Union that is responsible for the safety, security, and stability of the European Unions’ financial system and is charged with protecting the public. The European supervisory authority for the securities sector, ESMA was established on 1 January 2011. The European Securities and Markets Authority is an independent EU authority based in Paris. It aims to contribute to the effectiveness and stability of t Read this Term) published today its final technical advice (TA) paper for the European Commission and invited companies involved in the securities markets to submit their consultations on its draft regulatory technical and implementing standards (RTS/ ITS) regarding the implementation of the Markets in Financial Instruments Directive (MiFID II) and Regulation (MiFIR).

The ESMA’s publication needs the attention of all stakeholders involved in the securities markets. Authorities and firms which are subject to MiFID II and MiFIR - in particular, investment firms and credit institutions performing investment services and activities.

The paper is also important for trade associations and industry bodies, institutional and retail investors and their advisers, and consumer groups, as well as any market participant because the MiFID II and MiFIR requirements seek to implement enhanced provisions for investor protections.

Incoming Regulatory Changes

The Chair of the ESMA, Steven Maijoor, said, “Today’s implementing rules on both secondary markets and investor protection issues reflect ESMA’s desire to achieve the best outcome for market users and investors, taking into account the extensive submissions received from our stakeholders.”

“The advice now goes to the European Commission to use in preparation of its delegated legislation, while our technical standards are open for a second round of consultation. Once fully implemented, MiFID II will have a significant impact on the EU’s securities markets, its users and infrastructure providers. It will bring greater transparency and improve the overall functioning of markets thus strengthening investors’ trust in the financial sector,” he elaborated.

MiFID II will include most financial instruments, trading venues and trading techniques with additional requirements for algorithmic and high-frequency traders.

Amongst the changes which will be implemented with the introduction of MiFID II/MiFIR are changes to the functioning of secondary markets, new transparency requirements for a broad range of asset classes and the obligation to trade derivatives on trading venues.

Further Steps by the ESMA

The technical advice paper has been finalized following extensive consultations with stakeholders and will be forwarded to the European Commission. The draft regulatory technical and implementing standards previously consulted upon are open for public comment until March 2, 2015. The ESMA also outlines that an open hearing will be held in Paris on February 19, 2015.

ESMA will use the input received from the consultations to finalize its draft regulatory technical standards which will be sent for endorsement to the European Commission by mid-2015, while implementing standards will be forwarded by January 2016. MiFID II/ MiFIR and its implementing measures will be applicable from January 3, 2017.

Following are links to the Technical Advice paper and the Consultation paper on the ESMA website.

All contributions received by the firms submitting them will be published following the close of the consultation, unless the company requests otherwise.