The MiFID II timelines, which were outlined by the EC’s Internal Market and Services Directorate General, originally indicated that the industry could expect the draft consultation document, to which market participants provide feedback for the Commission’s consideration, by late September or early October.
However, the MiFID review is thought to have proved more complex and expansive than the executive body, which has been struggling with a heavy workload, originally anticipated.

Discussions regarding the details of the consultation process are still taking place and publication of the draft consultation paper has been pushed back to late November, according to people familiar with the matter.

In a written statement, a spokeswoman for the Internal Market and Services division of the commission said: “MiFID consultation will be launched before the end of November, most likely.”

Mark Hart, managing director at the Association for Financial Markets in Europe, said it was important for the commission to assure the quality of the consultation paper. But he added that AFME was “hopeful that the delay will be accompanied by a more realistic consultation period than the two-month period that had previously been indicated.”

The delay will have a knock-on effect on the MiFID review. The draft legislative proposal, which will be put to the European Parliament for a vote, was initially slated to be finalised in the first quarter. Sources now expect it to take place as late as July. Because of the summer 2011 European parliamentary recess, which runs from July 25 to August 26, the first reading of the draft consultation document by the European Parliament may not take place until next October.

Although the industry expected some delay, an October parliamentary reading would mean MiFID II is unlikely to go live until 2013. This could put the European markets at a strategic disadvantage globally, say industry experts.