Recent developments in EU financial markets regulation.
EU authorities have conceded that the January 2017 deadline for implementing the revised Markets in Financial Instruments Directive (MiFID II) must be pushed back, probably for a year. The postponement underlines a gap within the EU between tough rhetoric on financial market reform and the institutional ability to translate it into practice. However, EU regulators have made clear that the MiFID II delay will not spill over to slow other reforms -- for example, by moving to resolve a long-running dispute with the United States over derivatives clearing.
Firms' compliance challenges will be formidable and are as yet undefined.
The scope of these challenges will depend on formal adoption of the final texts of pending technical standards.
The MiFID II delay vindicates concerns expressed by ESMA, and will buttress its authority.
