This time around Mifid is bigger and targeting the derivatives markets. Dan Barnes looks at its likely impact.
Mifid II, the revision of the original 2007 Markets in
Financial Instruments Directive (Mifid), will impact trade
execution workflow, order routing, and trade reporting of
derivatives. It will change the way that derivatives are traded
in Europe, but important parts of the key legislation are still
David Doyle, EU policy advisor in financial services, says,
"There have been very serious delays in agreeing some of the
critical elements. The whole MIFID II package was highly
complex, diverse and heterogeneous dealing with trading-related
issues as well as consumer protection. I don’t
think the European Commission (EC) quite understood what it was
getting into when it started."
The Council of the European Union, one of
Europe’s two major legislative bodies, signed off
its version of the Mifid II text on 17 June, which meant it
could begin negotiating a final version with
Europe’s other body, the European Parliament (EP)
with the mediation of the EC. There are a number of differences
between the Council’s text and the version signed
off by the EP in October 2012. How they are reconciled will
determine the shape of the derivatives trading landscape in the
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