CP15/43: Markets in Financial Instruments Directive II Implementation – Consultation Paper I

We set out our implementation proposals, and seek views on the proposed changes to the FCA Handbook.

Why are we issuing this consultation paper?

MiFID II is currently due to apply from 3 January 2017 and by 3 July 2016, Member States must change their laws and regulations to give effect to the provisions of the MiFID II that are in a directive and not directly applicable. Discussion is currently taking place between the Commission, the European Parliament and Council of the European Union about whether the date of application of MiFID II should be delayed by a year. If there is a change to the legislated timetable, our implementation plans will take that into account.

HM Treasury (The Treasury) consulted on most of the changes to UK legislation required to implement MiFID II in March 2015. At the same time, we began our own consultation process and published a discussion paper, DP15/3, about issues where we have discretion in implementing MiFID II. We cannot consult on the full range of changes we need to make to our Handbook until we have greater clarity on the MiFID II implementing measures, particularly the delegated acts. So we have decided to consult in stages.

This first MiFID II consultation paper covers, and seeks views on, the issues related to our regulation of the secondary trading of financial instruments. Some of the points on which we are consulting may be impacted by as yet unpublished EU legislation and guidance, but we think it is helpful to set out our views on these matters, at this relatively early stage of the implementation process.

Read Consultation paper 15/43 online

Download Consultation paper 15/43 [PDF]

Who is this consultation aimed at?

This consultation affects a wide range of firms we authorise and recognise, particularly

  • investment banks
  • interdealer brokers
  • firms engaging in algorithmic and high-frequency trading
  • trading venues
  • prospective data reporting service providers
  • investment managers

Next steps

We want to know what you think of our proposals. Please send us your comments by 8 March 2016 via our online form or to this address:

MiFID Coordination
Markets Policy and International Division
Financial Conduct Authority
25 The North Colonnade
Canary Wharf
London E14 5HS

Telephone: 020 7066 9758
Email: cp15-43@fca.org.uk

We will consider your feedback and publish our rules in a Policy Statement in the first half of 2016. We will also publish further consultations, on the other Handbook changes required to implement MiFID II.

Further information

Press release: FCA consults on aspects of the Markets in Financial Instruments Directive II implementation

DP15/3: Developing our approach to implementing MiFID II conduct of business and organisational requirements

FCA MiFID webpages

view the FCA Handbook