The aim of the Markets in Financial Instruments Directive II (MiFID II) is to address the shortcomings of the first MiFID, implemented in 2007 as a cornerstone of capital markets regulation in Europe. This regulation provides for significant changes in business and operating models, systems, data, people and processes and will impact those engaged in the dealing and processing of financial instruments. It is not exclusively a compliance exercise, it has major strategic implications that may provide market opportunities and competitive advantage for the early movers.
MiFID II is being implemented at a time when companies are dealing with a raft of other regulations. To this extent is it possible to bring MiFID II under a wider regulatory change umbrella to align with related regulations and thereby avoid duplication and streamline workstreams. With its complexity and broad scope, companies need to start assessing the impact of MiFID II early to determine budgets, timelines and ensure that their strategy and organisation is aligned for compliance by January 2017.