The FCA has published a speech given by David Lawton (Director of Markets, FCA) at the FCA MiFID II conference. The speech is entitled MiFID II: The future of European trading in the balance.

In his speech Mr Lawton provides an overview of some of the key changes that MiFID II and MiFIR bring. This includes a brief discussion on topics such as transparency in wholesale markets, commodity markets, high frequency trading, wholesale conduct, best execution, dealing commission and retail investor protection.

At the end of his speech Mr Lawton makes three important points:

  • there are a range of issues that still need resolving in MiFID II and now is the time for industry and the regulator to put their heads together to find answers. It is important that stakeholders remain engaged in the policy making process, especially given that a second large consultation is expected from the European Securities and Markets Authority (ESMA);
  • firms cannot hold back on developing their implementation plans until all the details are available. Efforts are required now, and firms must make sure that they are planning towards January 2017; and
  • the FCA recognises the challenges for industry and will be on hand to help. The FCA will do its best to explain the new requirements, what is required of firms and set out its expectations clearly.

Mr Lawton also mentions that the FCA expects ESMA to publish its second consultation paper at the end of this year, and its recommendations to the European Commission, Parliament and Council in mid-2015. Publication of the technical standards will follow in late 2015 or early 2016. Only then will the FCA consult on changes to its own rules.

View MiFID II: The future of European trading in the balance, 19 September 2014