On June 30, 2016, EU legislation postponing the implementation date of the MiFID II package was published in the Official Journal of the European Union. The MiFID II package will now formally not apply until January 3, 2018 instead of 2017. The postponement includes all of the technical standards and national laws although member states will need to transpose the requirements into national laws by July 3, 2017. In addition to the provisions delaying the implementation date, certain substantive amendments have also been made to the original texts of MiFID II. For example, Securities Financing Transactions, as defined in the new Securities Financing Transactions Regulation, will be excluded from the pre- and post-trade transparency obligations under MiFID II and there are revisions to specifically require the public disclosure of bid and offer prices for package orders.
The amending legislation also includes a delay to the application of certain provisions of MAR. MAR refers to definitions and concepts in MiFID II. Accordingly, references in MAR relating to organised trading facilities (a new type of trading venue introduced by MiFID II), SME growth markets and emission allowances will not apply until MiFID II enters into application. MAR otherwise applied from July 3, 2016. Similarly, the application of certain provisions of the Central Securities Depositories Regulation will also be delayed. CSDR includes rules on settlement discipline which refer to eligibility criteria for SME growth markets found in MiFID II. To ensure legal certainty, the current MiFID provisions will remain effective in relation to the CDSR until MiFID II enters into force.
The amending Regulation is available at: http://eur-lex.europa.eu/legalcontent/EN/TXT/?uri=uriserv:OJ.L_.2016.175.01.0001.01.ENG&toc=OJ:L:2016:175:TOC, the amending Directive is available at: http://eur-lex.europa.eu/legal-content/EN/TXT/?uri=uriserv:OJ.L_.2016.175.01.0008.01.ENG&toc=OJ:L:2016:175:TOC and our client note, "MiFID II Implementation Delayed to 2018", is available at: http://www.shearman.com/~/media/Files/NewsInsights/Publications/2016/06/MiFID-II-Implementation-Delayed-to-2018- FIAFR-06212016.pdf.