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Will MiFID II be delayed?

With the MiFID II/MiFIR deadline now less than 14 months away, there is a great deal of work to do. This applies to all in the commodities industry, in particular those who lose their exemptions. Those in the financial industry will often have even more to do. As a result, many wish for a delay to the start of the rules.

This article on the Money Marketing web site argues for such a delay, and indicates that some in the European Parliament would consider pushing the date out. There have also been comments from MEPs, including Kay Swinburne, that some aspects of the Regulatory Technical Standard (RTS) could be rejected, as reported here on The Trade News web site. This would give  even less time for compliance if the date is not moved. However the article also notes comments that even with disagreement, it is unlikely that the rules as a whole will be delayed. The best that can be hoped for is for some items to be “phased in”. Comments by regulators at several conferences indicate that since there are no transitional arrangements in the Level 1 text, unless it is changed by the European Parliament, even a phase in may not be offered.

Those who have not yet started preparing for MiFID II, whether by carrying out the exemption calculation or commencing work on MiFID authorisation, are thus advised to start without delay. This is made harder because the “denominators” of the threshold calculations are not available. However there is no reason not to carry out the rest of the calculation, which will give a good idea of exemption status.

About avivhandler

Aviv is the Managing Director of ETR Advisory, a niche consultancy focused on the regulation of the commodity, energy and financial markets. He has more than 23 years of experience in the financial, energy and commodity markets, covering regulatory compliance, credit, risk and financial technology. Prior to founding ETR, he was Partner at SunGard Global Services, where he built a Centre of Excellence in European Energy and Commodity Regulation. Before that, he founded Coherence, a consulting firm specializing in credit risk in commodity and energy trading as well as software product management. The credit practice ultimately became part of Sirius Solutions, where he was the Managing Director of Europe. He has also held management roles at KWI and Iris Financial, among other organizations. Mr. Handler holds a degree in computer science from Imperial College, University of London.


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