Balaji Murali, Malini Raman, TCS Financial Solutions
MiFID, one of the most significant regulations passed by the EU with the objective of improving competitiveness in the EU’s financial markets by harmonizing the regulatory framework, has now been recast into MiFID II and MIFIR. On October 20, 2011, the European Commission adopted a legislative proposal for the revision of MiFID to form MiFID II and a new regulation (MiFIR). MiFID II is wider in scope in terms of the asset classes and activities covered; additionally, stringent transparency rules around reporting have been proposed.
MiFID II/MiFIR were originally scheduled to become operational by January 2017. However, due to significant technical implementation challenges being faced by market participants, the European Commission has extended the deadline for compliance to January 2018. MiFID II focuses on reinforcing investor confidence, reducing market disorder and systemic risks and increasing the efficiency of financial markets, while also reducing unnecessary costs for market participants.
Read the impact on European financial markets and key challenges faced.