ICMA offers MiFID II/R briefings and workshops
24 August 2017 London
Image: Shutterstock
The International Capital Market Association (ICMA) has organised a series of briefings and workshops to help its members prepare for the 3 January 2018 implementation of the second Markets in Financial Instruments Directive and Regulation (MiFID II/R).
Amid concerns about the directive and regulation’s effects on fixed income markets, ICMA is highlighting the main challenges of the legislation for primary and secondary markets, repo and collateral, and asset management.
A dedicated web page has been prepared to keep ICMA members informed.
According to ICMA, the extent to which repos and other securities financing transactions are in the scope of MiFID II/R “has been subject to some ambiguity”.
“Many of the most critical issues have been clarified by now. Most importantly, it has been confirmed that pre- and post-trade transparency, most transaction reporting and some of the critical best execution requirements under RTS 27 will not apply to securities financing transactions.”
But other MiFID II/R provisions still appear to apply, ICMA said. “This creates challenges. For instance, securities financing transactions concluded with EU central banks will have to be reported under MiFIR, and thus separately from all other securities financing transactions which are reported based on the Securities Financing Transactions Regulation framework.”
The European Securities and Markets Authority has confirmed that securities financing transactions are not in scope of RTS 27, although firms will still have to ensure compliance with the related requirements under RTS 28.
Areas that require further clarification include record-keeping requirements and trade confirmations.
ICMA’s MiFID II/R workshops are scheduled to take place in Stockholm (6 September), Brussels (4 October), Luxembourg (5 October), Paris (6 October), Madrid (19 October), Frankfurt (26 October) and Milan (27 October).
Amid concerns about the directive and regulation’s effects on fixed income markets, ICMA is highlighting the main challenges of the legislation for primary and secondary markets, repo and collateral, and asset management.
A dedicated web page has been prepared to keep ICMA members informed.
According to ICMA, the extent to which repos and other securities financing transactions are in the scope of MiFID II/R “has been subject to some ambiguity”.
“Many of the most critical issues have been clarified by now. Most importantly, it has been confirmed that pre- and post-trade transparency, most transaction reporting and some of the critical best execution requirements under RTS 27 will not apply to securities financing transactions.”
But other MiFID II/R provisions still appear to apply, ICMA said. “This creates challenges. For instance, securities financing transactions concluded with EU central banks will have to be reported under MiFIR, and thus separately from all other securities financing transactions which are reported based on the Securities Financing Transactions Regulation framework.”
The European Securities and Markets Authority has confirmed that securities financing transactions are not in scope of RTS 27, although firms will still have to ensure compliance with the related requirements under RTS 28.
Areas that require further clarification include record-keeping requirements and trade confirmations.
ICMA’s MiFID II/R workshops are scheduled to take place in Stockholm (6 September), Brussels (4 October), Luxembourg (5 October), Paris (6 October), Madrid (19 October), Frankfurt (26 October) and Milan (27 October).
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