Compound Growth

© Compound Growth Limited 2012-2017

Confirmed by the EC - MiFID II delayed until 2018

3rd March 2016

The European Commission (EC) have now officially proposed an extended application of MiFID II by one year to 3 January 2018.

Application of the revised Markets in Financial Instruments Directive, known as MiFID II, has had a one year extension proposed by the EC, providing a new deadline for implementation across Europe of 3rd January 2018.

 The Revised Markets in Financial Instruments Directive (MiFID II)

Reason for proposing an extension?

By why the 12 month extension? MiFID II poses exceptional technical implementation challenges for both regulators and market participants. For MiFID II to work effectively, a complex technical infrastructure needs to be set up as ESMA (the European Securities and Markets Authority) has to collect data from about 300 trading venues on about 15 million financial instruments.

The EC has however now been informed by ESMA that neither competent authorities, nor market participants, would be able to have the necessary infrastructure and systems in place and ready for the original deadline for implementation on 3 January 2017.

Thus, in order to avoid legal uncertainty and potential market disruption and given these exceptional circumstances, an extension was considered necessary.

MiFID II Delayed until 2018