A 12-month delay to Mifid II regulation, which is expected to be announced by the European Commission in weeks, may not be enough for the industry to prepare, says the chief of the European Securities and Markets Authority (ESMA).
It is widely expected that Mifid II will be delayed by 12 months, with its new implementation date to be January 2018. But Steven Maijoor, chair of ESMA, told Reuters he thinks this may not be enough time.
“We suggested a year delay but that assumes a relatively speedy endorsement of all the technical standards.
“The final making of these IT systems can only really start once these technical standards are finally set, and that requires that these are endorsed by the Commission and also accepted by the Parliament and Council. If that process is lengthened too much then a year might not be sufficient,” Maijoor said.
Maijoor adds that the market is keen for some certainty on whether there will be a delay or not.
“I am optimistic there will be a delay. It’s very important for market participants and all of us to know.
“I would expect that this would be settled in a few weeks. But whether it’s a year, or shorter or longer, or whether it’s for all of Mifid or only a part of Mifid, that’s really a political decision.”