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February 1, 2014

Weekly Roundup | MiFID II Special | 2nd February 2014

Dear all,

After the agreement reached in Brussels two week's back a huge number of news items, commentary and analysis pieces have cropped up all over the internet.

MiFID II / MiFIR will have tremendous effects on our clients in the coming 2-3 years and we as Capco are supremely well positioned to help our clients to not only overcome this new regulatory burden but to actually profit from it.

If you have any questions on MiFID II / MiFIR please get in touch with Carsten Hahn or myself.

This special feature of "Dazzling Derivatives" provides an overview of recent news items.

Best regards

Tom

(FYI, some articles require a subscription (e.g. RISK, Financial News), others a free registration (e.g. Tabb Forum, DerivSource))

If you can't access an article let me know.

 

Markets in Financial Instruments (MiFID): Commissioner Michel Barnier Welcomes Agreement in Trilogue on Revised European Rules

I welcome the agreement in principle reached today by the European Parliament and the Council on updated rules for markets in financial instruments (MiFID II). These new rules will improve the way capital markets function to the benefit of the real economy. European Commission Press Release: Markets in Financial Instruments (MiFID): Commissioner Michel Barnier Welcomes Agreement in Trilogue on Revised European Rules.

 

Deal to Regulate Financial Markets and Products and Curb High-Frequency Trading

Comprehensive rules to govern financial markets were agreed informally by negotiators for Parliament and the Council of Ministers on Tuesday. These rules are designed to close the loopholes in the existing legislation, ensuring that financial markets are safer as well as more efficient, investors are better protected, speculative commodity trading is curbed and high-frequency trading is regulated. European Pariliament Press Release: Deal to Regulate Financial Markets and Products and Curb High-Frequency Trading.

 

Europe in Securities Markets Shake-Up

Europe has agreed its biggest overhaul of securities markets since the 2008 crisis, extending its regulatory reach into off-exchange dealing, commodity speculation and the new technologies that have transformed the speed of modern trading. FT: Europe in Securities Markets Shake-Up.

 

EU Reaches Deal on Sweeping Securities Reform

Curbs on commodity speculation and ultra-fast share trading will be introduced across the European Union (EU) under an agreement reached on Tuesday on a broad reform of securities markets. Reuters: EU Reaches Deal on Sweeping Securities Reform.

 

European Parliament Reaches Agreement on MiFID 2

European Parliament and Council of Ministers reach informal agreement on rules to regulate financial markets and curb high-frequency trading. Automated Trader: European Parliament Reaches Agreement on MiFID 2.

 

Industry Hails Last-Ditch MiFID II Agreement but Uncertainties Remain

European politicians reached agreement on the core rules of MiFID II last night, but industry experts warned there is a lot of work still to be done before the legislative framework is complete. The Trade News: Industry Hails Last-Ditch MiFID II Agreement but Uncertainties Remain.

 

MiFID II “Will Hurt Investors”

Tuesday’s landmark deal between the European Parliament, Council and Commission on MiFID II will hurt long-term investors and may paint the regulator into a corner, according to Juan Pablo Urrutia, European general council at broker ITG. Banking Technology: MiFID II “Will Hurt Investors”.

 

MiFID II Update: HFT Crackdown, Speculative Position Limits, and Investor Protection

Rules aimed to help ensure safer and more efficient financial markets for investors were formally agreed upon during a meeting between negotiators for the European Parliament and the Council of Ministers on Tuesday, and were announced in an official press release by the European Parliament updated on Wednesday of this week. Forex Magnates: MiFID II Update: HFT Crackdown, Speculative Position Limits, and Investor Protection.

 

MiFID II Could be Death Knell for RDR

Barely one year after its implementation‚ the RDR may be facing extermination on the back of the EU’s freshly printed landmark directive on financial regulation. International Adviser: MiFID II Could be Death Knell for RDR.

 

Mifid Show Moves to Paris After Breakthrough Agreement

After the euphoria of the EU’s Markets in Financial Instruments Directive (Mifid) deal in Strasbourg, the march on Paris has begun. FT: Mifid Show Moves to Paris After Breakthrough Agreement.

 

Commodity Exchanges Miffed by Mifid

The name of the legislation is a mouthful and its acronym captures the feeling of many European commodity players towards it. The EU’s Markets in Financial Instruments Directive II, or Mifid (say it fast), could finally be agreed in Strasbourg today, after nearly four years of negotiations. FT: Commodity Exchanges Miffed by Mifid.

 

Done Deal for MiFID II. What You Need to Know

Europe finally has agreed on the terms of MiFID II, extending its regulatory reach into fixed income, FX, OTC trading and commodity speculation. Here are seven details you need to know as implementation begins. Tabb Forum: Done Deal for MiFID II. What You Need to Know.

 

Day of the Mifid, or, To Stupidity and Beyond!

After years of wending through to what is to an American an incomprehensible legislative process that involves a three body problem (the trialogue of the Commission, the EU Parliament, and member states), Europe has agreed on its version of the trade execution portion of Frankendodd: Mifid II.  (The clearing and OTC collateralization equivalents are covered under a different law, EMIR.) Streetwise Professor: Day of the Mifid, or, To Stupidity and Beyond!

 

OTF Transparency Waivers Survive Final Mifid Debate

European disclosure regime for derivatives platforms diverges from that in US. FX Week: OTF Transparency Waivers Survive Final Mifid Debate.

 

Shell Says EU Energy Regulation Diverts $1 Billion From Trading

Royal Dutch Shell Plc, Europe’s largest oil company, said the European Union’s planned regulation to curb speculation in commodity derivatives may endanger security of energy supply. Business Week: Shell Says EU Energy Regulation Diverts $1 Billion From Trading.

 

Deutsche Kreditwirtschaft begrüßt Erhalt der provisionsbasierten Beratung

Am gestrigen Dienstagabend sind die Trilogverhandlungen über die EU-Finanzmarktrichtlinie MiFID II abgeschlossen worden, die das Wertpapiergeschäft der Banken und Sparkassen grundlegend verändern wird. VÖB: Deutsche Kreditwirtschaft begrüßt Erhalt der provisionsbasierten Beratung.

 

EU Agree New Trading Reforms, Introduce OTFs & Curbs on HFT

  • Establishment of Organised Trading Facilities (OTF) – restricted to non-equities, such as interests in bonds, structured finance products, emission allowances or derivatives.
  • Limits on Commodities trading net positions – limit the size of a net position which a person may hold in commodity derivatives
  • Curbs on High-frequency algorithmic trading: would have to have effective systems and controls in place, such as “circuit breakers” that stop the trading process if price volatility gets too high.

Single Dealer Platforms: EU Agree New Trading Reforms, Introduce OTFs & Curbs on HFT.

 

Provisionsberatung: MiFID II degradiert Kleinanleger zu “Plankton”

Bereits 2011 hatte die Europäische Kommission Vorschläge zur Novellierung der Richtlinie über Märkte für Finanzinstrumente (MiFID II) veröffentlicht. Der Vorschlag der Kommission zur Überarbeitung der MiFID umfasst neben der Richtlinie, eine Verordnung über Märkte für Finanzinstrumente (MiFIR), die darauf abzielen, so der Originalton, “die Finanzmärkte effizienter, widerstandsfähiger und transparenter zu gestalten.” Social Banking 2.0: Provisionsberatung: MiFID II degradiert Kleinanleger zu “Plankton”.

 

MiFID II Under Starter’s Orders

So, the much-anticipated trilogue meeting finally took place yesterday. Regulation Matters: MiFID II Under Starter’s Orders.

 

EU Moves to Curb Food Price Bets by Traders

The European Union has voted through rules to limit the ability of banks and hedge funds to bet on food prices. CTRM Center: EU Moves to Curb Food Price Bets by Traders.

 

At Last

IT MAY sound like another instalment of “The Hobbit”, but “MiFID 2” is in fact the European securities industry’s biggest date with destiny in half a decade. CTRM Center: At Last.

 

Time to Add MiFID II to the Worry List

Think the EMIR derivatives reporting deadline of 12 February is too soon? Anxious about the final AIFMD deadline of 22 July? Not yet worked out how to fill in Annex IV of the AIFMD? Well, you now have one more regulatory problem to add to your list of concerns. COOConnect: Time to Add MiFID II to the Worry List.

 

Finance Watch Welcomes MiFID II Agreement, Calls for Strong Level 2 to Realise the Benefits

Finance Watch, the public interest advocacy group, welcomes last night’s inter-institutional agreement on MiFID II and calls for a strong Level 2 process to realise the benefits for society (see below for explanation of 'Level 2'). Finance Watch: Finance Watch Welcomes MiFID II Agreement, Calls for Strong Level 2 to Realise the Benefits.

 

MiFID: Gegenlobby macht den Unterschied

Diesen Monat haben die Gesetzgeber die lang erwartete Einigung darüber erzielt, wie die Finanzmärkte künftig reguliert werden. Die überarbeitete Fassung der „Richtlinie über Märkte für Finanzinstrumente“ (kurz MiFID II) – an der zwei Jahre lang gearbeitet wurde – setzt mehrere Empfehlungen von Finance Watch in die Praxis um, u.a. zur Eindämmung des Hochfrequenzhandels und Spekulierens auf Rohstoffmärkten. Finance Watch: MiFID: Gegenlobby macht den Unterschied.

 

MiFiD II: Out of the Starting-Gate

A surprising outbreak of harmony has seen the European trilogue partners reaching agreement on MifiD II. Regulatory Reform: MiFiD II: Out of the Starting-Gate.

 

MiFID II: More Time But Don’t Let Your Guard Down!

Working late into Tuesday night, European lawmakers concluded a compromise over the new Markets in Financial Instruments Directive (MiFID II). The final text has not yet been made public, and is not expected for several days.  However, some details have emerged. RegTechFS: MiFID II: More Time But Don’t Let Your Guard Down!

 

OTF Transparency Waivers Survive Final Mifid Debate

European disclosure regime for derivatives platforms diverges from that in US. Risk: OTF Transparency Waivers Survive Final Mifid Debate.

 

Energy Traders Breathe Sigh of Relief over Mifid II Position Limits

Mifid II exemptions for physically settled power, gas, coal and oil greeted by European energy traders. Risk: Energy Traders Breathe Sigh of Relief over Mifid II Position Limits.

 


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