The united EU financial regulatory framework is already put in effect. However, only 11 EU countries adopted MiFID II. Will low MiFID II Compliance reshape regulations?
5 January, AtoZForex – Two days ago, MiFID II regulations have kicked in. The new set of financial regulations aims to standardize the regulatory norms all across the 28 EU member states. However, it appears that only 11 out of all EU nations have added the legislation into their national laws.
MiFID II Update: Only 11 EU countries adopted MiFID II
MiFiD II was highly awaited by the industry experts all across Europe. The legislation is already officially valid, but the majority of financial entities warned that it might take some years to feel the effect of it.
The launch of MiFID II has marked an important moment for the EU financial markets. Additionally, the regulations were aiming to make EU capital markets more competitive in regards to the US ones.
Ahead of the launch, the chairman of the European Securities and Markets Authority, Steven Maijoor, has stated:
“It will be the first time we have a complete overview of all financial instruments in the EU.”
However, the banks, investors, and brokers appear to need some time to adapt to the regulations. As a matter of fact, MiFIDII covers pretty much everything – from commissions to the trading venues.
Will low MiFID II Compliance reshape regulations?
According to the data from the EU Commission, just 11 out of 28 EU members have incorporated the MiFID II into their national laws. Moreover, ESMA has stated that EU investors are still able to use markets in the remaining 17 countries that have failed to comply with MiFID II in time.
The fresh set of regulations consists of more than 1.7 million paragraphs. Considering this fact, it is not surprising many market participants have faced challenges while trying to comply with the regulations.
As of now, the industry insiders believe the EU financial regulations will set a specific grace period, during which they will not crack down on the firms that are trying to comply. Yet, this is still unclear.
Others also say that MiFID II signals the arrival of a certain “shake-up” to the industry. Yet, given that the regulations took more than 7 years to complete, the framework landed in a relatively different environment to the one where it was created. This might mean that MiFID II might be reshaped in the upcoming years.
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