With the European Securities and Markets Authority (ESMA) releasing its draft regulatory technical standards for the review of the Markets in Financial Instruments Directive (MiFID II) in December, the industry is gaining clarity on the next major phase of regulation. MiFID II will introduce sweeping changes for many firms, not least of all in terms of the scope of reporting requirements that will come into place, but who will be impacted the most, and how will this overlap with other aspects of regulatory reform in Europe?
- With the detail provided by ESMA, what are the primary changes in MiFID II from its first iteration?
- To what extent have reporting requirements been extended, and what does this mean for market participants trading on and off-exchange?
- How much of an overlap will there be between MiFIR and other legislation such as the European Market Infrastructure Regulation, and can firms use this to their advantage?
- Will the new requirements serve to increase transparency in Europe’s capital markets, or as with MiFID I, are there likely to be unintended consequences?
