With less than a year before the original deadline, European regulators extended the date for market participants to implement the latest iteration of the EU’s Markets in Financial Instruments Directive (MiFID II). The directive, which now has a January 2018 compliance date, will apply to EU firms as well as non-EU firms (including US entities) that trade either with EU counterparties or in financial instruments traded on EU-regulated venues.
Many aspects of MiFID II are familiar to US swaps market participants who have become subject to similar Dodd-Frank requirements over the past few years. However, MiFID II goes beyond Dodd-Frank by covering a broader range of financial instruments in addition to swaps (e.g., stocks, bonds, and derivatives), and by bringing more market participants into scope.
This Regulatory brief analyzes those MiFID II rules that will have the most impact on the market.