As the year opens, here we gather a few thoughts on what we can expect for the year ahead, with respect to the primary rules covered by this blog, and a note on the blog itself. The year is certainly likely to be busy.

Financial regulation – MIFID II and EMIR

The “MIFID II Quick Fix” will officially go into effect at the end of February. Those in the EU will see changes to the application of the Ancillary Activity Exemption (see here) as well as the “official” start of the positions limits changes (see here).

As the year unfolds, it is likely to be EMIR that occupies an increasing amount of time related to the REFIT changes to reporting (see here). While the changes will not apply until at least 2023, the order of magnitude of the changes will require much planning.

With more than a year having passed since the end of the Brexit transition period, we now see the “UK track” of financial regulation beginning to diverge. On the MIFID II side, we will see the outcome of the Wholesale Markets Review and its implications (see here). The effect of the consultation on UK EMIR and how it will be implemented will also have an effect (see here). The divergence on the financial side will likely give rise to challenges, especially for groups with entities in the EU and UK.

REMIT, energy, market abuse

The coming year will likely see more changes on the REMIT side, as we heard in the recent REMIT forum (see here), and also from other published documentation (see here) where we will at least see changes to reporting, if not more.

On the energy regulation side, the recently announced Hydrogen and Decarbonised Gas package (see here) as well as the “Fit for 55” measures announced (see here) will no doubt interact with the rules covered here.

Finally, it is more than likely that the anti-abuse measures applied under REMIT and MAR will lead to a continuation of the fines we have seen over recent years.

This blog

As for the past few years, this blog will continue to be provided free of charge to the industry. The second half of last year saw a reduction in posting frequency, and we hope to be up to the former frequency by February. The blog is distinct from the “Regulatory support service” offered by ETR Advisory, who also run this blog (see here). Those who are interested in the comprehensive service provided are encouraged to contact us on info@etr-advisory.com.

We wish all readers a happy new year and look forward to providing useful updates over the course of 2022.