MiFID II

Quite rightly, there are veritable storms in capital markets conferences and the press about what needs to be done to prepare for MiFID II, due to take effect in 4+ months. There seems to be little chance for a further stay of execution, but then, with remarkable irony, MiFID I hit securities trading in November 2007 as the Global Financial Crisis was deepening, leading to the most massive destruction of capital in decades, and so undermining large swathes of the world economy. Regulators cannot time such matters, and the preparation of reforms based on broad public consultations and multiple drafts takes years. Still, we are where we are: perhaps some sort of progressive implementation would be sensible. If the authorities are certain of the value of their objectives, then surely it would be worth demonstrating some flexibility.

This is the fourth in a series of five thought pieces Thomas Murray wishes to share with clients this summer, the questions for our fields of expertise before the amorphous Brexit project takes shape.

In response to the 2007-2009 financial markets crises, and in line with G20 direction on restoring global economic growth, a primary objective of the European Commission was to shore up gaps in capital markets regulation wherever they were to be found.   As regards custody, the partially overlapping segments of central securities depositories and custody banks have been subject to colliding regulatory purposes and often contradictory official projects – if confusing, this is somewhat understandable given that the two domains fall between capital market and banking legislation/regulation, each subject area with its own points of view.  This still needs sorting out, and that clarification of duties and compliance will take place in the near background whilst the British exit from the EU is defined and executed.

Thomas Murray Data Services spoke to Chris Bates, chief commercial officer of Abide Financial, about the firm's activities as a reporting hub across multiple regulations and jurisdictions.

Thomas Murray Data Services spoke to Bill Scrimgeour, global head of regulatory and industry affairs at HSBC Securities Services, about the imending UCITS V directive, the lessons and crossovers to AIFMD and a look at other regulatory affairs impacting the fund and custody industries.

As trade reporting under EMIR (the European Markets Infrastructure Regulation) enters its second year, a number of issues still remain unresolved. In an attempt to resolve some of the transparency issues around the mandate, which is designed to afford transparency into derivatives trading activities, ESMA (the European Securities and Markets Authority) has launched the Trade Repositories Project.

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