MiFID II delayed for one year
The European Commission has delayed the implementation of the revised Markets in Financial Instruments Directive, or MiFID II.
Authorities and market participants will now have until 3 January 2018 to comply with the new rules, the Commission said on Wednesday.
MiFID II requires the European Securities and Markets Authority (ESMA) to collect information on 15 million separate financial instruments from around 300 trading venues. The Commission said ESMA informed it that it would not be possible to collect all the information by the original deadline of January 2017.
“Given the complexity of the technical challenges highlighted by ESMA, it makes sense to extend the deadline for MiFID II,” Jonathan Hill, Commissioner for Financial Services, Financial Stability and Capital Markets Union, said.
“We will therefore give people another year to prepare properly and make the necessary changes to their systems. Meanwhile, we are pressing ahead with the level II legislation to implement MiFID II and expect to announce those measures shortly.”
A response to the 2008 financial crisis, MiFID II aims to bring more robust and integrated regulation to European financial markets. It includes new rules on high frequency trading, stricter disclosure requirements for financial instruments, and stronger investor protections.