Close Menu
    Latest Category
    • Finance
    • Tech
    • EU Law
    • Energy
    • About
    • Contact
    EUbusiness.com | EU news, business and politicsEUbusiness.com | EU news, business and politics
    Login
    • EU News
    • Focus
    • Guides
    • Press
    • Jobs
    • Events
    • Directory
    EUbusiness.com | EU news, business and politicsEUbusiness.com | EU news, business and politics
    Home » One year delay for MiFID II directive

    One year delay for MiFID II directive

    npsBy nps18 May 2016Updated:25 June 2024 Finance No Comments3 Mins Read
    — Filed under: EU News Headline1
    Share
    Facebook Twitter LinkedIn Pinterest Email
    One year delay for MiFID II directive

    Photo © Lee Torrens – Fotolia

    (BRUSSELS) – The EU confirmed Wednesday a one-year delay to the MiFID directive, new securities market rules which regulate firms providing share-dealing services, after a Council agreement with the European Parliament.

    The one-year postponement of the transposition and application dates will affect the provision of services for investments in financial instruments and the operation of regulated financial markets.

    “MIFID”  and “MIFIR”

    A recent revision of rules on financial instruments set out to promote the integration, competitiveness, and efficiency of EU financial markets. The Council adopted these in May 2014, amending and replacing an existing “MIFID” text that regulates markets in financial instruments.

    The rules consist of two legislative instruments:

    • regulation 600/2014 (“MIFIR”), aimed at improving transparency and competition of trading activities by limiting the use of waivers on disclosure requirements and by providing for non-discriminatory access to trading venues and central counterparties (CCPs) for all financial instruments, and requiring derivatives to be traded on organised venues;
    • directive 2014/65/EU (“MIFIDII”), amending rules on the authorisation and organisational requirements for providers of investment services and on investor protection. The directive also introduces a new type of trading venue, the organised trading facility (OTF). Standardised derivatives contracts are increasingly traded on these platforms, which are currently not regulated.

    New dates

    Under the approach agreed with the European Parliament:

    • the deadline for the member states to transpose MIFIDII into national legislation will be set for 3July 2017;
    • the date of application of both MIFIDII and MIFIR will be set for 3January 2018.

    Other provisions

    Additionally, amendments were agreed as concerns trading on own accounts, package transactions, alignment with the EU directive on securities financing transactions and the date of application of certain provisions of a regulation on market abuse.

    Implementation challenges

    Both the directive and the regulation were to become applicable 30months after entry into force, i.e. as of 3 January 2017, with member states having to transpose the new directive by 3 July 2016. However, due to technical implementing challenges faced by the European Securities and Markets Authority (ESMA) and by national competent authorities, essential data infrastructures will not be in place by 3January 2017.

    The new framework requires trading venues and systematic internalisers to provide competent authorities with financial instrument reference data that describes in a uniform manner the characteristics of every financial instrument subject to the scope of MiFID II. In order to collect data in an efficient and harmonised manner, a new data collection infrastructure must be developed. This obliges ESMA, in conjunction with competent national authorities, to establish a data system covering a wider range of financial instruments, given the extended scope of MiFID II.

    On 2 October 2015, ESMA informed the Commission that a delay in the technical implementation of MiFIDII was unavoidable. Neither competent authorities nor market participants will be in a position to apply the new rules on 3 January 2017. This would lead to legal uncertainty and potential market disruption.

    The regulation extending the deadlines for transposition of MIFIDII and application of MIFIDII and MIFIR is expected to be approved by the European Parliament at first reading. It will then be submitted to the Council for adoption.

    Draft directive amending MIFID II as regards certain dates

    Draft regulation amending MIFIR and two other regulations as regards certain dates

    Add A Comment
    Leave A Reply Cancel Reply

    You must be logged in to post a comment.

    nps
    • Website

    Related Content

    Brussels to postpone market risk prudential requirements under Basel III by one more year

    Euro dollar - Photo by cottonbro studio on Pexels

    Euro, US dollar dominate extra-EU trade in 2024

    Mînzatu - Dombrovskis - Photo © European Union 2025

    Competitiveness and security the focus of EU’s ‘spring package’

    Euro ATM - Image by Peggy und Marco Lachmann-Anke from Pixabay

    Bulgaria cleared to join euro on 1 January 2026

    Valdis Dombrovskis - Photo © European Union 2025

    Moderate growth set to continue for EU economy in 2025: spring forecast

    ESIP logo

    Policy Officer, European Social Insurance Platform, ESIP

    LATEST EU NEWS
    Euro - ECB-Photo by Mika Baumeister on Unsplash

    US Dollar remains steady amid Middle East tensions – Euro currency news daily

    16 June 2025

    Brussels to postpone market risk prudential requirements under Basel III by one more year

    12 June 2025
    Cyberattacks - Photo by Tima Miroshnichenko on Pexels

    EUR 145m calls to boost European cybersecurity for hospitals

    12 June 2025
    Detergents - Photo by Liliana Drew on Pexels

    EU Council and Parliament strike deal for safer detergents

    11 June 2025
    Cybersecurity - Image by Franz Bachinger from Pixabay

    EU adopts blueprint for dealing with European cyber crises

    6 June 2025

    Subscribe to EUbusiness Week

    Get the latest EU news

    CONTACT INFO

    • EUbusiness Ltd 117 High Street, Chesham Buckinghamshire, HP5 1DE United Kingdom
    • +44(0)20 8058 8232
    • service@eubusiness.com

    INFORMATION

    • About Us
    • Advertising
    • Contact Info

    Services

    • Privacy Policy
    • Terms
    • EU News

    SOCIAL MEDIA

    Facebook
    eubusiness.com © EUbusiness Ltd 2025

    Design and developed by : 

    Type above and press Enter to search. Press Esc to cancel.

    Sign In or Register

    Welcome Back!

    Login to your account below.

    Lost password?