Article

A new landscape for EU capital markets

The landscape for EU capital markets is set to change radically under new rules agreed in the revision to the Markets in Financial Instruments Directive and new Regulation (MiFID II/MiFIR). The reforms have been a long time in the making and are ambitious in scope.

Executive summary

The landscape for EU capital markets is set to change radically under new rules provisionally agreed in MiFID II/MiFIR:

  • The investment management sector willface increased requirements, in particular relating to post-trade reporting, high frequency algorithmic trading and investor protection. They will have new choices about where to execute their business and compliance costs are set to rise
  • Many of the new rules are designed to promote competition and support better price formation, which should ultimately benefit the investment management sector and their clients. However, it will be important that ESMA, tasked with calibrating the pre-trade transparency regime in technical standards, is able to strike the right balance between ensuring investors receive the information they need, without harming liquidity
  • The reforms are expected to enter into force in June/July this year and firms will then need to comply from around Q1 2017
A new landscape for EU capital markets

Performance issue 14 – May 2014

Performance is a triannual digest, dedicated to investment management professionals, which brings you the latest articles, news and market developments from Deloitte’s professionals and clients. 

Performance issue 14
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