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Super Tuesday RegDelta alert no 1

JWG analysis

Last week, long after the news of Super Tuesday which reshaped the EU regulatory landscape, Europe made MiFID II, MAR, CSMAD, DGSD and the BRRD law of the land.

The final Markets in Financial Instruments Directive (MiFID II) , weighing in at a slim 69% fewer pages thanks to repagination, appears to be identical to the final draft text.  We have loaded it in our RegDelta trading library and will incorporate it into our ongoing MiFID II analysis and deep dive CDMG meetings.

Comparing the timeline set out in the draft MiFID II text to the finalised dates in the published legislation, there are no great surprises:

• The transposition deadline for member States is now 3 July 2016
• The implementation deadline for firms is now 3 January 2017 (note below)
• Article 65(2) – which requires CTPs to create policies surrounding the adequate collection of information, and to publicise this information in a continuous electronic data stream – is due 3 September 2018.

The Market Abuse Regulation (MAR) and the Directive concerning Criminal Sanctions for Insider Dealing and Market Manipulation (CSMAD) are 77 pages combined.  Initial analysis suggests that a number of revisions have been made from the preliminary Commission proposal documents which our analysts will be having a look at in further detail.

The Deposit Guarantee Schemes Directive (DGSD) has evolved marginally from the original proposal from the Commission.  One delta we have spotted in our preliminary analysis is the inclusion of a provision stating that the EBA shall, at least every five years, conduct reviews to examine the resilience of DGSs.  The law now states:

• The transposition date for many of the provisions is to be 3 July 2015
• However, if “appropriate authorities” deem this date to be unrealistic, some of the provisions may be pushed back for implementation in late 2018.

A preliminary analysis of the Bank Recovery and Resolution Directive (BRRD) finds that draft regulatory technical standards – including specific obligations:

• Are due to be submitted by the EBA to the Commission by 3 July 2017.
• The EBA will also be submitting their draft regulatory technical standards concerning the creation of recovery plans for firms to the Commission by 3 July 2015.

It is clear that consultation on these standards will begin very soon and firms will need to ensure they’re focusing on the issues they will face in their recovery planning – and seeking to address some of these concerns in their consultation responses.