“Quick fix” agreed for MiFID II
An agreement has been reached between the European Parliament’s negotiating team and member state representative on how to effect the delay to MiFID II, according to this post on the web site of MEP Markus Ferber (in English at the bottom). It is likely that the final wording will be agreed and ratified in early … Continue reading →
Yesterday night, a political agreement on the MiFID II "Quick Fix" was reached between the European Parliament's negotiation team on MiFID II and Member States' representatives. The European Parliament's Rapporteur for MiFID II, Markus Ferber, MEP, explained:
"The agreement reached will establish regulatory clarity for market participants and Member States' authorities alike by extending the deadline for application and transposition by a year. Furthermore, we made use of the opportunity at hand and fixed some issues within MiFID II that might have caused complications. Overall, the compromise reached will make the text more pragmatic and more coherent. Therefore, it will help MiFID II achieving its overall objective - making financial markets in Europe more efficient and more resilient. While, the Commission has been wasting time in the entire MiFID II process over and over again, Parliament and Member States have proven that quick and decisive action is possible even on highly complicated files. The next priority now is getting the implementing legislation right."
Background: The compromise reached includes a one-year delay to the date of application and the date of transposition as well as to certain aspects of the Market Abuse Regulation. Furthermore, a dedicated regime for the treatment of package transactions with regards to pre-trade transparency obligations was created, a clarification for the own-account exemption for corporate end-users introduced and SFTs were excluded from MiFID II transparency obligations. Lastly, a merely technical cross-referencing issue between the prospectus directive and MiFID II was addressed. The final wording is still to be finalised in technical meetings. The agreement needs to be approved by both Parliament and Council with a plenary vote in Parliament planned for early June.