About a-team Marketing Services
The knowledge platform for the financial technology industry
The knowledge platform for the financial technology industry

A-Team Insight Blogs

European Commission Proposes One-Year Postponement of MiFID II Compliance Deadline

Subscribe to our newsletter

The European Commission has responded to the European Securities and Markets Authority’s (ESMA) request to postpone the compliance deadline of Markets in Financial Instruments Directive II (MiFID II) with a proposal for a one-year extension of the deadline to 3 January 2018.

While the proposal, which must be approved by the European Parliament and EU member states, could give financial firms some relief in the run up to compliance, it does not explicitly change the 3 July 2016 deadline for member states to transpose the EU regulation into national law. This problem is confounded by the fact that ESMA’s latest Regulatory Technical Standards, published in September 2015, have not yet been approved by the Commission and continue to cause uncertainty in the market about how the regulation’s rules should be implemented.

Despite the uncertainty and the Commission’s proposed postponement of MiFID II, industry experts speaking at last week’s A-Team Group Intelligent Trading Summit in London made it clear that the extensive challenges of MifID II mean firms must continue implementation programmes using all available information from ESMA whatever the compliance deadline.

The Commission stated that the postponement would ‘take account of the exceptional technical implementation challenges faced by regulators and market participants’. Jonathan Hill, commissioner for financial services, Financial Stability and Capital Markets Union, expanded on this, saying: “Given the complexity of the technical challenges highlighted by ESMA, it makes sense to extend the deadline for MiFID II. 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.”

Subscribe to our newsletter

Related content

WEBINAR

Recorded Webinar: GenAI and LLM case studies for Surveillance, Screening and Scanning

As Generative AI (GenAI) and Large Language Models (LLMs) move from pilot to production, compliance, surveillance, and screening functions are seeing tangible results – and new risks. From trade surveillance to adverse media screening to policy and regulatory scanning, GenAI and LLMs promise to tackle complexity and volume at a scale never seen before. But...

BLOG

RepRisk Roundtable London: Tackling Hidden Sustainability Risk in Private Markets with AI

Sustainability risk is moving into the core of capital markets decision-making, closely tied to conduct risk, counterparty exposure and reputational impact. For senior leaders across risk, investment, compliance, sustainability, and supply chain functions, the question how to interpret complex signals from vast quantities of data and apply them with confidence in credit, investment, and operational...

EVENT

TradingTech Summit London

Now in its 15th year the TradingTech Summit London brings together the European trading technology capital markets industry and examines the latest changes and innovations in trading technology and explores how technology is being deployed to create an edge in sell side and buy side capital markets financial institutions.

GUIDE

What the Global Legal Entity Identifier (LEI) Will Mean for Your Firm

It’s hard to believe that as early as the 2009 Group of 20 summit in Pittsburgh the industry had recognised the need for greater transparency as part of a wider package of reforms aimed at mitigating the systemic risk posed by the OTC derivatives market. That realisation ultimately led to the Dodd Frank Act, and...