Capco’s Regulatory Monitoring Newsletter
Posted: 3 June 2014 | Source: Capco | Source: Capco
MiFID II/MiFIR – Approval by European Parliament and next steps
After the European Parliament approved the last draft version of MiFID II and MiFIR on 15 April, the European Commission requested ESMA to define the technical advice on possible delegated and implementing acts. This stage, also called level 2 phase, will determine the future technical requirements and rules to define the practical needs of the legislative MiFID II/MiFIR version.
The definition process will be accompanied by many consultation rounds with concerned market participants. A first consultation paper is expected in May and will subsequently be published by ESMA.
The herculean task for ESMA will be to define market-sensitive rules among others such as controls on high frequency algorithmic trading, volume caps for dark pool trading, thresholds for commodities trading, transparency obligations for non-equity instruments, measurements to identify liquid assets and the exact functionality of the Organized Trading Facilities (OTF)