European Commission revealed today that it was considering delaying the Markets in Financial Instruments Directive (Mifid II) for a year.
Reuters reported that Martin Merlin, a commission official, has said that a delay was needed “if we want to have a smooth and effective implementation” of Mifid II, which was decision to implement reforms agreed during the financial crisis.
And, according to Reuters, Steven Majoor, chairman of the European Securities and Markets Authority, has called some elements of the timetable “unfeasible” in a separate announcement.
And Bloomberg has reported that the European Commission has also confirmed receiving a letter from the European Securities and Markets Authority “stating that it won’t be possible to implement certain aspects” of Mifid II in time.
At the moment, Mifid II is due to take effect on 3 January 2017.
Michael McKee, partner at DLA Piper, said: “Delaying the implementation date for Mifid II would be a welcome recognition of the fact that it will not be practicable for much of the technology and reporting to be put in place by 3 January 2017, particularly given that neither the RTSs, nor the implementing measures at EU level are yet finalised.”
And Farid Anvari, of counsel in Baker & McKenzie's Structured Capital Markets team, added: “Many market participants will welcome this delay – both to give firms further time to prepare for compliance and also because it will give an opportunity for uncertain elements of Mifid II to be clarified. Some of the requirements of Mifid II will have a considerable impact on market structures so it is worth taking the time to get it right.”