EU Nations, Parliament Reach Compromise on MiFID II Delay

European Union national governments and the European Parliament agreed to push back by one year the start date of securities market rules known as MiFID II.

Negotiators for member states and the parliament struck a deal Monday night to extend the deadline for application and transposition to 2018. They also amended some issues “that might have caused complications,” Markus Ferber, the assembly’s lead lawmaker on the file, said in an e-mailed statement.

“The agreement reached will establish regulatory clarity for market participants and member states’ authorities alike,” Ferber said. “A dedicated regime for the treatment of package transactions” when it comes to pre-trade transparency obligations requirements was also agreed upon, along with “a clarification for the own-account exemption.”

The European Commission, the EU’s executive arm, proposed to delay MiFID II in November to give banks and other financial firms time to build data-reporting systems and other technology to meet the new requirements. The process took longer than expected as the parliament and member states negotiated changes to the legislation.

The deal now needs final approval from member states and the parliament. A plenary vote in the EU assembly is planned for early June, according to Ferber.

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