The European Commission has extended the deadline for compliance with the revised Markets in Financial Instruments Directive – known as MiFID II – by one year. The new deadline is 3 January 2018.
"This is to take account of the exceptional technical implementation challenges faced by regulators and market participants," the Commission said in a statement.
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Jonathan Hill, Commissioner for Financial Services, Financial Stability and Capital Markets Union said: "Given the complexity of the technical challenges highlighted by ESMA, it makes sense to extend the deadline for MiFID II.
"We will therefore give people another year to prepare properly and make the necessary changes to their systems. Meanwhile, we are pressing ahead with the level II legislation to implement MiFID II and expect to announce those measures shortly."
The European Securities and Markets Authority (ESMA) has to collect data from about 300 trading venues on about 15 million financial instruments.
ESMA informed the Commision that neither competent authorities nor market participants would have the necessary systems in place by 3 January 2017 — the original implementation date, the Commission said in the statement.
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By GlobalDataHence, an extension was deemed necessary to avoid legal uncertainty and potential market disruption, the notice read.
However, this extension will not have an impact on the timeline for adoption of the ‘level II’ implementing measures under MiFID II/MiFIR.
The European Commission added that it will proceed with its adoption irrespective of the new date of entry into application of MiFID II.
