25 August 2016
Find out more

European Commission set to extend MiFID deadline again

19 October 2005  |  10269 views  |  0 clock

The European Commission is set to delay the implementation of its controversial Directive On Markets in Financial Instruments (MiFID) by a further six months.

The directive was originally due to come into force in April 2007, having already been delayed by a year to give financial firms more time to adapt structures and procedures to the new rules.

According to a Reuters report, Britain - which currently holds the rotating presidency of the European Union - will call for the deadline to be extended for a further six months to 1 November 2007 in order to give firms more time to prepare for the legislation and to avoid "any risk that the new timetable may not be met".

Member states are expected to meet on Friday to discuss the delay to the deadline, which is expected to be approved at a later date.

The new directive will enable banks to offer financial products across all 25 EU member states. Banks across the EU will be able to trade shares internally, off an exchange, but will be required to publish the prices of intended trades to the rest of the market beforehand.

But the new rules have been slammed by industry bodies including The European Banking Federation (FBE) which claims they are "too complex, cumbersome and restrictive" and by The Federation of European Securities Exchanges (FESE) which says the legislation "could have a detrimental effect on the transparency of initial public offerings (IPOs) as well as on the survival of smaller exchanges".

Earlier this year Sir Callum MCarthy, the head of the UK's Financial Services Authority (FSA), claimed the proposals would impose significant costs on the UK market and that it was "deeply unsatisfactory" that MifiD had not undergone a full cost-benefit analysis.

Analysts estimate that capital markets firms will be forced to spend up to EUR1 billion on technology in order to comply with the directive.

Comments: (0)

Comment on this story (membership required)

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board: sign up now

Related stories

MiFID compliance bill could reach $1 billion - TowerGroup

MiFID compliance bill could reach $1 billion - TowerGroup

04 October 2005  |  9849 views  |  0 comments
European securities exchanges add to MiFID concerns

European securities exchanges add to MiFID concerns

30 August 2005  |  8558 views  |  0 comments
European Banking Federation slams MiFID proposals

European Banking Federation slams MiFID proposals

22 August 2005  |  11025 views  |  0 comments
FSA hits out at MiFID cost burden

FSA hits out at MiFID cost burden

22 July 2005  |  12959 views  |  0 comments
MiFID to spark EUR1 billion IT spend

MiFID to spark EUR1 billion IT spend

20 July 2005  |  10270 views  |  0 comments
MiFID deadlines extended by six months

MiFID deadlines extended by six months

21 June 2005  |  6616 views  |  0 comments
Industry standards bodies band together for MiFID

Industry standards bodies band together for MiFID

04 April 2005  |  13836 views  |  0 comments

Related blogs

Create a blog about this story (membership required)
Visit equens.comVisit capgemini.comVisit VocaLink.com

Top topics

Most viewed Most shared
hands typing furiouslyBlockchain: what to expect for 2017?
8438 views 0 | 55 tweets | 46 linkedin
hands typing furiouslyBig Data's Three Big Trends in 2016
7102 views 5 | 22 tweets | 13 linkedin
hands typing furiouslyHow Banks Are Losing Millions by Ignoring...
6635 views 10 | 22 tweets | 8 linkedin
Nordea looking for AI and blockchain breakthroughsNordea looking for AI and blockchain break...
6186 views comments | 17 tweets | 19 linkedin

Featured job

Find your next job