MiFID II – market overhaul looms

Sweeping changes to the European securities markets are looming ever larger on the horizon with the recently agreed, substantial revisions to the EU Markets in Financial Instruments (known as ‘MiFID’) rules. With the adoption of the MiFID II Directive (Directive 2014/65/EU) and Regulation (Regulation (EU) No 600/2014, or ‘MiFIR’), we’re entering the final stretch of intensive preparatory work for the new ‘MiFID II’ regime.

The new regime goes live on 3 January 2017. Between then and now, over 100 implementing measures have to be developed and adopted by EU regulators. EU countries have to introduce the substantial changes set out in the revised Directive into their national legal frameworks, and also ensure that national rules do nothing to impede the effective operation of binding rules introduced by MiFIR. The remainder of 2014 and 2015 will be a time of frenetic activity when the full scale of the challenge will be revealed.

We already know that the way capital markets operate in Europe will change fundamentally. Learning both from the deficiencies of the original regime and from the financial crisis, the key goals are to radically strengthen both market integrity and investor protection, while ‘future-proofing’ the regime where possible.

All areas of the securities markets will be affected, some dramatically. All market participants and users, whatever their role, interest or size, will be impacted. Understanding how much, as early as possible, will be essential for making the right strategic and operational choices which maximise the opportunities but minimise the cost. The bottom line is that this is not a compliance exercise: it’s going to affect - and challenge - the whole business.

PwC can partner you through the coming months, providing insights and perspectives as the full regime comes into focus. We can mobilise multi-disciplinary teams bringing together skilled strategy, change management, operational efficiency, IT, tax, legal and regulatory specialists with extensive knowledge of global and European securities markets to help you address the challenges and realise opportunities of MiFID II.