MiFID Malfunction: Brexit Breaks Data Foundations
By Samuel Wilkes
February 13, 2017, Risk
For most of the past decade, legislators in Europe have been carefully crafting the vast construct that is the second Markets in Financial Instruments Directive (MiFID II) and its accompanying Markets in Financial Instruments Regulation (MiFIR). Once MiFID II takes effect in January 2018, its requirements are designed to alter over time, in keeping with the gradual changes in the size and shape of European Union markets.
At the heart of this calibration process is the data underpinning MiFID II’s regulation of market structures and practices. If this crucial reference data set were to be altered dramatically, it would completely distort the functioning of many central planks of MiFID, including trading and transparency obligations for equity and non-equity instruments alike.