While the impact of MiFID II on the energy and commodities sector has been relatively quiet recently (see here), there has been a great deal of discussion in the wider financial sector.
The issue of “research unbundling”, that is the requirement that research be charged for rather than provided as a “bundled service”, has had a major impact on the sub sector. This opinion piece on FT.com looks at some of the consequences of the legislation, and argues that it has been damaging.
Recently, two large fines relating to transaction reporting under the original MiFID were levied on two investment banks (see here and here). Reports are showing that those who must comply with transaction reporting under MiFID II are facing difficulty. This article on the Bryan Cave Leighton Paisner LLP web site looks at some of the issues. This article on Global Risk Regulator looks at this and several other issues with MiFID II. This article on Portfolio Adviser also looks at this issue, citing a report by Bovill that 1,335 firms had made misreporting notifications to the FCA so far.
It remains to be seen how enforcement progresses. it also remains to be seen whether the impact of MiFID II on the energy and commodities sector will increase in the near future.