The implementation of the MiFID II/R package is an enormous challenge for the fixed income markets and is likely to affect every single one of ICMA's members whether or not they are based in the European Union. We are now in the final six months of the implementation of the legislation prior to the deadline of 3 January 2018. The scope is exceptionally broad and the impact wide ranging.

ICMA has been undertaking significant work on MiFID II/R since its inception with a focus on the impact of the legislation on primary markets, secondary markets, short term markets (in particular repo and collateral) and research unbundling in the FI market.

As the deadline approaches we thought it would be helpful to provide a periodic summary of current ICMA MiFID II/R related activities and developments, this is the first ICMA MiFID II/R briefing. We trust that this will provide a useful digest of the current issues we are addressing, highlight ICMA briefing papers and position papers and where to find MiFID related information.

Martin Scheck
Chief Executive ICMA


MiFID II/R expected timeline

MiFID II and MiFIR are scheduled to enter into force on 3 January 2018, following a 12-month delay agreed by legislators in June 2016 from the original date of 3 January 2017. 

ESMA is expected to publish further Q&As to assist market participants in understanding the Level 2 text before 3 January 2018.

MiFID II/R implementation in primary markets

In primary markets ICMA continues to focus on implementation of the MiFID II/R product governance (PG) and PRIIPs regimes ahead of their coming into effect in January 2018.

Other primary market implementation aspects of MiFID II include: allocation justification recording, inducements, costs and charges and trade and transaction reporting.

Contact: ruari.ewing@icmagroup.org

MiFID II/R implementation in secondary markets

It is becoming increasingly evident that MiFID II/R is likely to have a dramatic impact on the way trading is currently conducted in the European fixed income markets, influencing not only the way in which firms work their orders and execute their trades, but also where they will choose to trade and with whom. This becomes even more complex given the scope within MiFID II/R for the various jurisdictions to use their individual discretion in how they interpret and apply the rules.

The main focus for secondary markets MiFID II implementation is the impact of pre and & post-trade transparency, best execution and the newly emerging market structure - MTFs, OTFs and SIs, on bond trading workflow.

Contact: elizabeth.callaghan@icmagroup.org

MiFID II/R implementation in repo and collateral markets

There are a number of areas where securities financing transactions (SFTs), including repos and securities lending transactions, are explicitly or potentially implicitly in scope of MiFID II/R. ICMA has focused its advocacy efforts where the regulatory requirements are ambiguous, disproportionately burdensome on SFT liquidity providers and users, or simply inappropriate. In particular, ICMA has focused on: transaction reporting; pre- and post-trade transparency; and best execution reporting.

Contact: andy.hill@icmagroup.org

MiFID II/R implementation of research unbundling for asset management

With the MiFID II application deadline less than six months away, asset managers and investors are actively trying to figure out the best way of adapting to the new EU research unbundling rules and their implementation in various Member States.

Contact: patrik.karlsson@icmagroup.org

ICMA MiFID II/R workshops

These workshops are designed to assist buy-side and sell-side bond traders in assessing whether they are on the same track as their counterparts in other regions. The workshops will also facilitate discussions on local implementation challenges and interpretations as well as the sharing of information.

They are aimed at bond trading participants who are heavily focused on transparency, best execution and the research obligations of MiFID II/R as well as the newly emerging market structure trends; including innovative protocols, platforms and research distribution. Panels will feature international and local experts from the buy-side and sell-side. They will be interactive and assume a working knowledge of cash bond trading MiFID II/R related requirements. The workshops are open to ICMA members and ICMA MiFID II working group participants.

Stockholm, 6 September
Brussels, 4 October
Frankfurt, 26 October

Further locations will be announced for these workshops contact: ICMAEvents@icmagroup.org for more information.


Contact for press: margaret.wilkinson@icmagroup.org

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