On June 27, the European Commission formally requested 24 EU Member States to write into national law the Markets in Financial Instruments Directive (MiFID) within two months. The deadline for this was January 31, 2007, but only the UK met that date and only Ireland and Romania have joined the UK since January in fully transposing MiFID into national law. The transposition deadline was intended to give the EU financial services firms affected by MiFID provisions nine months prior to November 1, 2007, when MiFID comes into effect, to make the necessary changes to systems, documents and procedures.

The European Commission has previously sent letters to these Member States seeking explanations for the delays in MiFID implementation. The formal requests are part of the second stage of the EU’s infringement procedure. If there is no satisfactory reply within two months, the European Commission can refer the matter to the European Court of Justice.