The final text of the European Commission's Markets in Financial Instruments Directive II – the document that will transform trading in Europe – is set to be published on October 21, nearly four months later than planned.
The October date now means MiFID II is unlikely to go live before 2013, leading to concerns that European markets are to be put at a strategic global disadvantage. Kay Swinburne, a Conservative MEP who sits on the Economic and Monetary Affairs Committee of the European Parliament, said the long-awaited review of the Directive, known as MiFID II, would be introduced alongside the Markets Abuse Directive, another important piece of European regulation, in late October. Swinburne said: “The expectation at the moment is that the revised MiFID and MAD texts will be released together on October 21. Elements of MiFID, particularly around the behavioural aspects of high-frequency trading, are being put into MAD".
MiFID II, which initially sought to address gaps left by the first, equities-focused version of the Directive launched in November 2007, proved far more expansive when a draft was published last December, covering fixed income, derivatives, commodities and share trading. The expanded nature of the review created a groundswell of discontent within the market and among some policymakers. This resulted in publication of the final text, which will take the form of a draft legislative proposal, being delayed. The proposal was initially due to be finalised in the first quarter of this year, but the Commission postponed publication to July and then again to October. However, Swinburne said MiFID II will be a ground-breaking piece of post-crisis legislation.
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