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MIFID2 – the impact on non-EU fIRMS

MIFID2 – the impact on non-EU fIRMS An update for firms located outside the European Union of the possible extra-territorial impact of certain provisions in the recast Markets in Financial Instruments Directive and Markets in Financial Instruments Regulation (together referred to as “MiFID2”).Design/methodology/approachThe focus is on the issues that are most likely to have an impact on non-EU firms, including buy/sell side financial institutions and private banks.FindingsThat the impact of MiFID2 will be felt far beyond the EU, particularly in relation to product governance, inducements and dealing commission, trading obligations, position limits for commodity derivatives and the new regime for accessing EU markets.Practical implicationsNon-EU firms need to assess their interaction with EU clients, counterparties and markets to identify the likely impact of MiFID2. Relevant interaction could include: manufacturing and distribution of financial instruments; the provision of investment research and dealing services to EU clients and trading in instruments which are admitted to trading on EU markets.Originality/valueThis article will be of interest to “third-country” firms, located outside the EU, but with a European connection, either in terms of European counterparties, investors or accessing European markets. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Journal of Investment Compliance Emerald Publishing

MIFID2 – the impact on non-EU fIRMS

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Publisher
Emerald Publishing
Copyright
© Clifford Chance 2017.
ISSN
1528-5812
DOI
10.1108/joic-06-2017-0039
Publisher site
See Article on Publisher Site

Abstract

An update for firms located outside the European Union of the possible extra-territorial impact of certain provisions in the recast Markets in Financial Instruments Directive and Markets in Financial Instruments Regulation (together referred to as “MiFID2”).Design/methodology/approachThe focus is on the issues that are most likely to have an impact on non-EU firms, including buy/sell side financial institutions and private banks.FindingsThat the impact of MiFID2 will be felt far beyond the EU, particularly in relation to product governance, inducements and dealing commission, trading obligations, position limits for commodity derivatives and the new regime for accessing EU markets.Practical implicationsNon-EU firms need to assess their interaction with EU clients, counterparties and markets to identify the likely impact of MiFID2. Relevant interaction could include: manufacturing and distribution of financial instruments; the provision of investment research and dealing services to EU clients and trading in instruments which are admitted to trading on EU markets.Originality/valueThis article will be of interest to “third-country” firms, located outside the EU, but with a European connection, either in terms of European counterparties, investors or accessing European markets.

Journal

Journal of Investment Compliance – Emerald Publishing

Published: Sep 4, 2017

Keywords: Non-EU; Extraterritorial impact; MiFID2; Third-country firms

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