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The request delineates which areas the technical advice will relate to: definition of derivatives contracts, conduct of business rules, organisational requirements, best execution, client order handling, and position management. The request also contains an indicative timeline: MiFID II/MiFIR to come into force June 2014, ESMA will provide technical advice by December 2014, delegated acts should be transposed by member states within 2 years of entry into force and should apply within 2 and a half years (30 months).
Technical advice relates to the adoption of delegated acts and is affected by the publication of a single consultation paper and public hearing. The development of technical standards is a more involved process: the publication of a discussion paper, a public hearing on the key elements, more detailed drafting, and a final consultation paper. The request’s deadlines are tighter than the usual 9 months for technical advice and 12 months for standards; while ESMA started preparatory work on MiFID II late last year, well in advance of its final approval, completion of such a challenging workload on a tight schedule will be challenging.
Full request to ESMA for technical advice