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The date of application of MiFID II is now close at hand. This session covers an update from the Regulator on where it thinks we are domestically and across the EU, including:
Despite the decision at the Referendum to leave the EU, the FCA has made it very clear that all UK regulated firms must implement MiFID II. But what will be the impact of Brexit on MiFID II? What about third country equivalence? This session will look at the following.
• Equivalence and the loss of passporting rights
• Issues with relocating to the EU
• Dual regulation coordination
• ESMA's Opinions on Supervisory Convergence
MiFID II sets new standards when using automated trading algorithms on trading venues. The new rules are meant to reduce risks resulting from the deployment of such technology highlighted in flash crashed and various trading incidents. Beside internal IT governance, MiFID II also requires disclosures of algorithms to trading venues and bespoke market making agreements. Key issues addressed, based on actual experience with German regulations front-running MiFID, will be:
Inducements & Unbundling
MiFID II significantly enhances the rules relating to inducements compared to MiFID I. Only certain ‘minor non-monetary benefits’ may be accepted by firms, while investment research costs will need to be unbundled from execution costs. This session addresses the final FCA rules, the ESMA guidance, the overlap with the US SEC regime, and where firms have ended up.
This presentation will focus on the potential implications of MiFID II on the commodity markets. It will consider its impact on the current functioning of commodity markets taking into account increased transparency obligations, new limitations on regulatory exemptions for hedging firms and the continued encroachment of regulation into the physical and OTC markets. The presentation will also discuss the potential effects of the new position limits regime and position reporting requirements and how this could change ETD trading behaviour.
Implementing the MiFIR transparency and transaction reporting obligations are proving significant and costly challenges to all market participants. This presentation will address the state of play in non-equities.
The presentation will cover what we know so far about the trading obligation for derivatives, and what we should expect next. Key areas of focus will include: