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

MiFID II: One Year On and None the Wiser

Subscribe to our newsletter

By Christian Voigt, Senior Regulatory Advisor, Fidessa

MiFID has achieved the rare feat of becoming a genericized trademark. In the same way that Xerox stands for copy machines in general, MiFID has turned into a synonym for all financial markets regulation. With the scorecard for its first birthday due, whether MiFID II really is ground-breaking, or deserving, remains debatable. However, there is no doubt about its voluminous size. And it is because of this unusual size that even one year on, we are none the wiser.

Firstly, while you could argue that MiFID II successfully changed global market structure due to research unbundling, you could also point out that MiFID II just added another level of mind-numbing box ticking with the introduction of best execution reports. So where does it leave us overall?

And secondly, it’s hard to understand what has happened at a micro-level. For example, we all agree that periodic auctions grew as a result of MiFID II, but what precisely caused this innovation? Was it because of the ban of the Broker Crossing Network, changes to the Systematic Internaliser regime, changes to the tick size or the introduction of the double volume cap?

Since all of those things occurred at the same time, it is virtually impossible to determine causality. It’s a bit like me randomly pushing buttons on my central heating boiler, until the house is warm.

If MiFID II teaches us anything it is that we shouldn’t have such large regulations in the first place. Instead of consulting and negotiating for ten years on texts exceeding 1.7 million paragraphs, how about lawmakers work on a steady stream of smaller changes. Faster time to market, better impact assessment, lower implementation costs, reduced risks, the benefits for everyone could be tremendous.

Subscribe to our newsletter

Related content

WEBINAR

Recorded Webinar: Managing Non-Financial Misconduct Under SMCR

Non-financial misconduct – encompassing behaviours such as bullying, sexual harassment, and discrimination is a key focus of the Senior Managers and Certification Regime (SMCR). The Financial Conduct Authority (FCA) has underscored that such misconduct is not only unethical but also poses significant risks to a firm’s culture and operational integrity. Recognizing the profound impact on...

BLOG

ESMA Post-Refit Data Quality Report 2024 (EMIR-SFTR-MiFIR) Improvements and Ongoing Challenges for 2025

The European Securities and Markets Authority (ESMA) recently published its fifth annual report on the Quality and Use of Data for 2024 (the Report), reflecting significant progress in the regulatory community’s approach to data management and utilization. This comprehensive assessment is pivotal as it outlines both the advancements made in the quality of regulatory data...

EVENT

RegTech Summit New York

Now in its 9th year, the RegTech Summit in New York will bring together the RegTech ecosystem to explore how the North American capital markets financial industry can leverage technology to drive innovation, cut costs and support regulatory change.

GUIDE

The DORA Implementation Playbook: A Practitioner’s Guide to Demonstrating Resilience Beyond the Deadline

The Digital Operational Resilience Act (DORA) has fundamentally reshaped the European Union’s financial regulatory landscape, with its full application beginning on January 17, 2025. This regulation goes beyond traditional risk management, explicitly acknowledging that digital incidents can threaten the stability of the entire financial system. As the deadline has passed, the focus is now shifting...